(Adds details of use of funds, sector peers)
JAKARTA, May 7 (Reuters) - PT Electronic City Indonesia (ECI), one of Indonesia’s biggest electronics retailers, is seeking to raise around $150 million in an initial public offering in June 2013 as it aims to tap foreign investor demand for consumer stocks, two sources said.
Indonesia’s IPO market is having the busiest second quarter ever with ECI becoming the 10th company in Southeast Asia’s largest economy to test investor appetites.
ECI, which aims to sell a stake of up to 25 percent, expects to use the funds from the IPO to finance the opening of new stores across Indonesia, said a source with knowledge of the deal. He declined to be named because the details have yet to be made public.
The Jakarta-based company, founded in 2001, currently operates 17 stores and 12 outlets from Jakarta to North Sumatra.
It is likely to be compared with peers such as PT Erajaya Swasembada and PT Tiphone Mobile, which are currently trading at a forward price-to-earnings ratio of 13.9 times and 10.7 times, respectively, according to Starmine.
Indonesia’s powerful and growing 45 million middle-class citizens are expected to be the main source of income for the company, which sells cellular phones, computers, office equipment and home appliances.
“ECI is representing a consumer play and domestic demand, which is unaffected by the slump of commodities prices,” said the second source with direct knowledge to the deal.
State-owned brokerage PT Danareksa Securities and Credit Suisse are the underwriters for the IPO. (Reporting by Fathiya Dahrul; Writing by Janeman Latul; Editing by Randy Fabi and Daniel Magnowski)