Jun 10, 2010

Molindo sets IPO price Rp450-Rp750

Malang-based ethanol maker PT Molindo Raya Industrial  will offer IPO price of Rp450-Rp750 per share to public investors.
During initial public offering (IPO), Molindo hopes to grab Rp300 billion-Rp500 billion of cash. Public expose and due diligence meeting will be held today.
Molindo will offload 375 million shares-500 million shares or equal to 25%-30% into the primary market. It registered IPO to Indonesia Stock Exchange last week.
The company is now in a process to obtain green light from Capital Market Supervisory Agency. "We hope IPO will be enabled on May," said Molindo's Commissioner Handjojo Rustanto.
According to a source familiar with the matter, Mandiri Sekuritas has been mandated by Molindo to arrange the IPO. PT Madusari Murni Indah is controlling share holder of Molindo Raya.
Molindo will use IPO proceed to support acquisition of 10,000 hectares of lands in South Sumatra which will be transformed into sugar cane plantation as well as preparation of infrastructure. Ethanol production reached 50 million liters last year. Molindo sold ethanol in the local market.
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