(Bloomberg) -- Holywings Group, the owner of the luxurious three-hectare Atlas Beach Club in Bali, is considering an initial public offering next year to help expand its entertainment empire across Asia.
The Indonesian company wants to bring the same establishment to Bangkok in 2025, according to cofounder Ivan Tanjaya. With a capacity of 1,000 people, it would be one of Thailand’s biggest nightclubs, he said in an interview last week.
That would mark the first overseas foray for Holywings, which currently operates over 50 bars and restaurants in Indonesia, including Atlas in Bali that prides itself as the largest beach club in the world, according to its website.
The company aims to increase its total number of establishments to more than 80 by end-2025, with plans to expand into Kuala Lumpur, Seoul and Taipei, said Tanjaya.
He and fellow cofounder Eka Setia Wijaya declined to give a target size for the Jakarta IPO but estimated the current valuation of the company at about $300 million, an exponential increase from the $150,000 in initial capital they had pooled together in 2014.
That’s even more remarkable considering Indonesia is home to one of the world’s largest Muslim populations, where drinking isn’t a widely popular pastime and alcohol is subject to steep taxes.
The IPO would add to as many as 95 companies planning to list in Southeast Asia’s biggest stock market, according to data from the Financial Services Authority. As much as 5.42 trillion rupiah ($348 million) was raised from new listings so far this year.
Tanjaya said all IPO proceeds would be used for working capital. The founders are preparing to speak with banks while remaining open to other funding options.
Nasi Goreng
Holywings has seen rapid growth in the last decade from its beginnings as a “nasi goreng” or fried rice stall in Jakarta. After months of dismal sales, Tanjaya and Wijaya started offering live entertainment. Soon, it brought in the crowds and even spurred various formats, from high-end nightclubs with tables going for nearly $1,000 each to mass market music bars where the average spend is $5.
“We still offer that nasi goreng in our menus,” said Wijaya. “It’s the same recipe but it sells better now.”
It’s not been without road bumps. Holywings was embroiled in controversy in 2022 after a promotion offering free drinks for customers named Mohammed or Maria. Its outlets were shut and several staff faced blasphemy charges.
“We’ve learned our lesson,” said Tanjaya, adding that the incident was partly why Holywings has since diversified its establishments and is looking overseas for growth. That comes as tourism is returning to pre-pandemic levels across Asia.
It aims to open the Atlas club in Bangkok before the popular Songkran festival in April, that typically draws in over a million foreign visitors. Its counterpart in Bali brings in about 60,000 customers on average each month; it can go as high as 10,000 in a single day during holidays.
At home, it’s banking on Indonesia’s growing young population and the emergence of healthy lifestyles, pioneering a Gen Z-exclusive nightclub in Jakarta and developing a sprawling spa and wellness complex in Bali.
“There are a lot of concepts we are planning,” said Tanjaya. “When you work in lifestyle, you have to be fast so you can tell the market, this is the next big thing.”
--With assistance from Prima Wirayani.
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