Apr 28, 2011

Cipaganti to pick IPO underwriters

PT Cipaganti Global Corporindo is holding a beauty contest to pick potential underwriters helping the company to arrange Rp1 trillion initial public offering of its unit PT Cipaganti Citra Graha in the second half of this year.
The securities companies under consideration are PT Trimegah Sekuritas, PT Ciptadana Securities and state-owned companies Mandiri Sekuritas and Danareksa.
Cipaganti Global President Director Andianto Setiabudi said the plan emerged last year and it was previously expected to happen enter the market in the first half this year.
Incomplete document and market development has delayed the plan until the second semester of the year.
“We have planned to make IPO of Cipaganti Citra Graha in the second half of 2011. It was delayed from the planned schedule in the first half of 2011,” he said today.
Proceeds from the IPO will strengthen the capital of the subsidiary running in transportation and heavy equipment. Andi said that the total share to be offered will be 30% to 40%. The amount keep Cipaganti Global the controlling shareholder of the unit.
“Previously, the holding would go public, but we decided to make IPO for Cipaganti Citra Graha. Then Cipaganti Inti Resources will follow in the first half of 2012,” he revealed.
Cipaganti is ready to conduct IPO bevaus the company is in healthy condition and will keep growing, according to Advisor Financial Cipaganti Group Iwan Purnawan. Given the good performance, the market will welcome the IPO.
“We are currently having a beauty contest of underwriters. There are some targets. But one securities company is too risky, so there will be a consortium,” he affirmed.
Cipaganti Citra Graha initially ran the business of car renting and travel agency. It developed into heavy equipment renting, which based in Borneo. The subsidiary then expanded the network to Java and Sumatera.
Cipaganti Citra Graha owns 500 units of heavy equipment and targets to increase to 1,000 units by 2011, in line with prospective mining sector. Of the target, 65% will come from its business partner Komatsu.

Disclosure: No position at the stock mentioned above.

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