Jakarta. Electric bike manufacturer Terang Dunia Internusa (TDI) aims for a 30% bottom line growth in 2024, supported by the company's plans to produce 60,000 electric bicycles and 200,000 electric motorcycles in 2024

"We will continue to innovate in developing products that can adapt to the market. We will also continue to collaborate with other parties to jointly advance the battery-based vehicle industry in Indonesia," Director of TDI, Andrew Mulyadi, said at the company's public expose in Jakarta, on Thursday.

To finance the increase in production, the company plans to list its shares on the Indonesia Stock Exchange (IDX) through an initial public offering (IPO) in the first quarter of 2024.

The company is aiming to raise Rp 283.3 billion ($18.18 million) to Rp 400 billion by offering 1,67 billion shares or up to 25% of its capital at a price ranging from Rp 170 to Rp 240 per share. 

"All IPO funds will be used to finance working capital related to e-motor and e-moped production, including the purchase of frames, batteries, dynamos, wheelsets, multi-information display (digital speedometer, GPS), brake systems, and suspension," said Andrew.

The roadshow and bookbuilding start on Jan. 11 to Jan. 22, 2024. The effective statement from the Financial Services Authority (OJK) is expected to be obtained on Jan. 30, 2024. TDI shares are set to be listed on the IDX on Feb. 7, 2024, under the ticker symbol UNTD.

UNTD management has appointed Mirae Asset Sekuritas Indonesia and BRI Danareksa Sekuritas as the underwriters.

Andrew said that electric motorcycle sales will continue to rise in the coming years on the back of government incentives and ease of financing.

In March 2023, The government announced that it would allocate Rp 7 trillion to subsidize the purchase and conversion of electric motorbikes over the next two years. Each unit of brand new electric two-wheelers and a converted e-motorbike that originally ran on combustion engines will get a subsidy of Rp 7 million.

The rapid sales of electric motorcycles have lifted the company's financial performance. According to its prospectus, the company's total equity increased by Ro 46.8 billion or 27.8 percent, from Rp 168.3 billion on Dec. 31, 2022, to Rp 215.1 billion on July 31, 2023.

"This year we target a 30% increase in profits and as for revenue, it will certainly be even higher, possibly growing by 100%," said Andrew.

TDI produces United Bike brand for bicycles and United E-Motor for electric motorcycles. The company currently distributes bicycles to 490 dealers domestically and 15 dealers internationally.

"With the infrastructure and experience we have, combined with government incentives, ease of financing, and the government's development of electric charging infrastructure, we are strategically positioned to develop our electric motorcycle business," Andrew said.