Biaxially-oriented polypropylene (BOPP) maker PT Indopoly Swakarsa Industry plans to offload 2.30 billion of shares at maximum or equal to 35.17% stakes into the stock market during initial public offering (IPO). Indopoly has mandated PT OSK Nusadana Securities Indonesia as the only IPO stock underwriter.
In parallel with the stock sale, Indopoly plans to issue a maximum 480.04 million warrants series I or 6.67% of its total capital paid in.
In a prospectus published today, Indopoly will use proceed of IPO worth Rp450 billion to cover capital expenditure in relation to expansion of BOPP's production capacity. The expansion needs around Rp350 billion of investment. About Rp100 billion will be used by Indopoly to refinance bridging loan facility from PT Bank CIMB Niaga Tbk, maturing the next 12 months since February 12 2010. The remaining proceed will be utilized by Indopoly to fulfill working capital.
Before the IPO, Jefflyne Golden Holdings Pte Ltd controls 63.82% stakes in Indopoly, Noble Ox International Ltd owns 36.03% stakes, and PT Inti Pincuranmas Nugraha 0.15%. Post IPO and warrant exercise, Jefflyne Holdings will hold 38.29%, Noble Ox owns 21.62%, Inti Pincuranmas holds 0.09%, and public shareholders hold 33.33% and warrant holders own 6.67%.