Jul 1, 2010

Indopoly sets IPO price at Rp210

Biaxially-oriented polypropylene (BOPP) maker PT Indopoly Swakarsa Industry Tbk has set the IPO price at Rp210 per share, the lowest level of the price offer.
According to prospectus published today, the company will offload 2.30 billion shares or 35.17% stakes into the primary market.
Considering the IPO price, Indopoly Swaskarsa, owned by Salim Group, will bag Rp483 billion of cash.
During the last public expose and due diligence meeting early June, Indopoly and its single underwriter PT OSK Nusadana Securities Indonesia, offered the shares at the price range of Rp210-Rp315 per share.
In parallel with the shares sale, Indopoly aims to issue 460.04 million of warrants for free to investor with the ratio of 5 shares for 1 warrant. Each holder of 1 warrant has rights to buy one share at Rp250 per share.
Assuming all warrant would be exercised, the company could grab additional proceed of Rp115 billion.
The prospectus reveals that 82% of the IPO proceed will be used by Indopoly Swakarsa to fulfill capital expenditure for business expansion and the remaining is allocated for working capital.
"Indopoly also plans to refinance US$50 million of loan facility to PT Bank CIMB Niaga Tbk," the prospectus said.
Post IPO and warrant conversion, Indopoly is 38.29% owned by Jefflyne Golden Holdings Pte Ltd, Noble Ox International Ltd of 21.62%, PT Inti Pincuranmas Nugraha of 0.09%, public share holder of 33.33%, and warrat holders of 6.67%.

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