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Get to know OLIV (PT Oscar Mitra Sukses Sejahtera Tbk) Closer Before Buying its IPO Shares

PT Oscar Mitra Sukses Sejahtera Tbk (OLIV) is a company engaged in trading furniture and household goods. In addition, this company also has supporting businesses, namely the furniture and decoration industry as well as interior design. The Company continues to add new products, both brands and sub-categories such as Laundry & Cleaning, Baby Furniture, Plastic Furniture, to complete the company's portfolio with the aim of increasing sales.

What slightly distinguishes OLIV from other furniture companies is that OLIV is a pioneer of online-based furniture companies, so the company is invited to cooperate with various marketplaces, one of which is JD.ID and received an award as the first furniture store in the marketplace.

Initially, the company used this opportunity as an additional sales channel for its business activities. However, with the increasing trend of online shopping and due to the prolonged Covid-19 pandemic, online sales are one of the biggest contributions to the Company's sales.

Since 2020, the company has become one of the best predicated online furniture traders in almost all marketplaces.

The Company succeeded in expanding its market share and expanding its wings in the retail markets of Malaysia, the Philippines, Singapore, Thailand and Vietnam through sales in local marketplaces.

In terms of sales, we will know that online sales of OLIV furniture continues to increase every year. In 2019, OLIV's online sales were still Rp 16.28 billion. In 2020, online sales rose to IDR 29.27 billion, and rose again to IDR 38.45 billion in 2021.

On the other hand, the company's offline sales continued to fall. In 2019, OLIV recorded offline sales of Rp 4.17 billion. In 2020 and 2021, offline sales are only Rp. 2.27 billion and Rp. 938.14 million, respectively.

OLIV boosts its sales by utilizing video content which is then broadcast on video sharing platforms such as YouTube. Not surprisingly, this company has received many blessings during the past social restrictions.

As of October 2021, OLIV recorded sales of Rp 39.39 billion, up from Rp 23.89 billion in the same period a year earlier. Profit for the year even more than doubled, from Rp 206.32 million to Rp 525.08 million.

Sales of plastic products are the biggest contributor to OLIV's sales. The sales value as of October 2021 reached Rp 16.32 billion. This figure is up from Rp 7.74 billion a year earlier.

Talking about the IPO process, OLIV has set the initial public offering (IPO) price at the level of Rp 100 per share. This IPO price is the lower limit, from the IPO offering price of the prospective issuer codenamed OLIV in the range of Rp 100 to Rp 125 per share.

OLIV plans to sell 400 million shares to the public. This means that the company, which operates in the retail trade of furniture for household appliances and kitchen utensils, will reap fresh funds of around Rp. 40 billion.

In addition to shares, OLIV also offers Series I warrants for this occasion. The number of warrants offered was 400 million warrants, which represented 26.67% of the total issued and fully paid shares at the time the registration statement was submitted to the Financial Services Authority (OJK).

The trading period for warrants will last from May 17, 2022. For trading warrants on the regular and negotiated markets, the trading deadline will last until May 15, 2023 and May 18, 2023 for trading warrants on the cash market. The exercise price of the warrants has been set at Rp 120 per share.

Meanwhile, the exercise period for the warrants will be from November 14, 2022 to May 18, 2023.

Acting as the implementing guarantor of the securities issuance is PT Danatama Makmur Sekuritas.

The following is the estimated schedule for OLIV's IPO:

- Initial public offering period: 9-12 May 2022

- Allotment date: 12 May 2022

- Date of distribution of shares & warrants electronically and refund: 13 May 2022

- Listing date of series I shares and warrants on the Indonesia Stock Exchange: 17 May 2022

The entire proceeds from the IPO, after deducting emission costs, will be used around 11.78 percent for capital expenditures related to warehouse renovation and strengthening the trading network for furniture products by adding an own-fleet fleet of trucks.

Furthermore, the remaining 88.22 percent will be used as working capital in the form of purchasing supplies, employee salaries, and marketing activities. The use of the Public Offering funds will also include leasing new warehouses.

Meanwhile, when this prospectus was published, the Company was still in the stage of exploring several options for the new warehouse location, where the new warehouse locations will be located in various cities in Indonesia. Meanwhile, the funds obtained by the Company from the exercise of the Series I Warrants will be used entirely for working capital in the form of purchasing supplies, employee salaries, and marketing activities.

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