CVC-Backed Softex Considers Indonesian IPO Delay on Virus Concern

(Bloomberg) -- PT Softex Indonesia, a sanitary product maker backed by private equity firm CVC Capital Partners, is weighing postponing an Indonesian initial public offering that could raise at least $400 million, people with knowledge of the matter said.

The Tangerang-based firm had planned to start gauging investor demand this month but the spread of the novel coronavirus has jeopardized travel plans, making meetings with prospective investors difficult, the people said. The choppy stock market is also not conducive to a share sale, while Softex needs more time to prepare its financial statements, said the people.

The Jakarta Composite Index of shares stocks capped the biggest monthly loss in almost two years in January and was near an eight-month low as foreign investors dumped the nation’s shares.

The company could delay the planned IPO to the middle of the year or even to the second half, depending on how the virus outbreak unfolds and market conditions, said the people, who asked not to be named as the information is private.

Deliberations are ongoing and no final decision has been made, the people said. A representative for CVC declined to comment, while a representative for Softex said the company has no comment, adding the firm and its shareholders always consider a “variety of strategic possibilities and fundraising.”

Softex, which was set up in 1976, sells its products in more than 35 countries, including developing economies where clean feminine-hygiene products are often considered luxury. Apart from its namesake sanitary pad brands, Softex also makes diapers named “Happy Nappy” and wet wipes, according to its website.

CVC bought a significant minority stake in the Indonesian company in 2015, which was the private equity firm’s fourth investment in the Southeast Asian nation at that time.

©2020 Bloomberg L.P.

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