KUALA LUMPUR (Oct 2): GD Express Carrier Bhd (GDex) said today it will subscribe for 44.5% in the initial public offering (IPO) of PT Satria Antaran Prima Tbk (SAP Express) for 92.71 billion rupiah (RM25.77 million) or 250 rupiah per share.

GDex said the group's participation in SAP Express’ IPO will enable it to tap into the fast-growing express delivery industry in Indonesia.

This is also in line with the group’s strategy of regional expansion, starting with Indonesia, it added.

In a filing with Bursa Malaysia today, GDex said it will subscribe for 137.5 million shares or a 16.5% stake in SAP Express' IPO, while its two wholly-owned subsidiaries GDex SEA Sdn Bhd and GD Valueguard Sdn Bhd will buy up 150 million shares (18%) and 83.33 million (10%) of SAP Express shares respectively.

It added that the subscription price will be satisfied through internal-generated cash and cash in hand.

"We believe Indonesia offers a vast growth opportunity for the courier business, supported by the growth of e-commerce as well as conventional business.

"The continuation of the group’s partnership with SAP Express will enable the company to provide business advice and support, as well as knowledge transfer between the two companies," said GDex.

GDex said barring any unforeseen circumstances, the proposed IPO subscription is expected to contribute positively to the group’s earnings and net assets in the future.

"The proposed IPO subscription is expected to be completed tomorrow (Oct 3), which is the scheduled listing date of SAP Express," it added.

This follows news reports last month that SAP Express is seeking to redeem its five-year convertible bonds worth 30 billion rupiah subscribed by GDex in November 2016, using funds from the IPO.

Shares of GDex rose 1.5 sen or 3.65% to close at 43 sen today, giving it a market capitalisation of RM2.35 billion.