Bali United is set to become the first professional football club in Southeast Asia to go public, with an initial public offering planned for next month.
The Gianyar-based club’s foray into the capital marked also marks a key milestone in Indonesia’s push to improve transparency and professionalism in its football industry, long plagued by corruption and mismanagement.
Bali Bintang Sejahtera, the company behind the football club, plans to sell a third of its enlarged capital and to list the shares on the Indonesia Stock Exchange (IDX).
“Until now, we have always been asked to be more transparent and bring everyone closer together,” said Yabes Tanuri, chief executive of Bali United.
“By going public, anyone can become a Bali United shareholder. We can become like a family, backing each other up. Be proud to guard, proud to be together, and also proud to own [the club],” Yabes said.
The company seeks between Rp 310 billion and Rp 350 billion ($22 million-$24 million) in fresh capital to expand its business. It plans to use about 19 percent of the proceeds for capital expenditure, to expand the club’s sports and academic facilities. About 60 percent will be used as working capital, including the recruitment of coaches and players. The remainder will go toward strengthen the capital structures of subsidiaries.
Bali United is one of few football clubs in Indonesia that have raised funding independently of local government sponsorships. It also has an established football academy, to develop young talent, and a merchandise store, the largest of its kind in the country.