May 6, 2011

First Pacific to buy 1.5% Salim Ivomas

First Pacific Company Limited, led by Chairman Anthony Salim, is proposing to subscribe 1.5% or 47.45 million shares of the total offer size of the global offering during an initial public offering (IPO) of PT Salim Ivomas Pratama Tbk (SIMP).
Salim Ivomas launched a 3.16 billion of new shares IPO or 20% of its enlarged capital scheduled on June 8, 2011. 
First Pacific, an investment company of Salim family which is listed at Hong Kong stock market and controls 50.1% shareholding in PT Indofood Sukses Makmur Tbk (INDF), will subscribe the Salim Ivomas shares at the offer price, an official statement published by First Pacific today.
First Pacific has principal business interests such as telecommunications, infrastructure, consumer food products and natural resources.
Indofood Sukses is a controlling shareholder in Singapore-based Indofood Agri Resources Pte Ltd (IndoAgri) with 68.95% shareholding interest. Indofood Sukses has also a 8.38% direct shareholding in Salim Ivomas Pratama. In turn, IndoAgri controls 90% shareholding in Salim Ivomas Pratama. 
Besides edible oil business, Salim Ivomas's agri business activities comprise of oil palm, rubber, sugar cane, cocoa and tea plantations, cooking oils, margarine and shortening.
1Q Performance
Salim Ivomas booked a 91.64% jump in net profit in the first 3 months of this year, thanks to the sales increase. The company posted net profit of Rp527.35 billion in 1Q 2011, compared to Rp275.18 billion a year earlier.  Meanwhile the sales was Rp2.93 trillion, up 38.63% from Rp2.11 trillion.
Operating profit soared 102.92% from Rp465.94 billion to Rp945.47 billion, sending an increase in its margin to 32.30% from 22.07% In its official prospectus published today, the inventory period was 81 days, longer than 79 days. 

Disclosure: No position at the stock mentioned above.

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