May 30, 2011

Jaya Agra soars 8% on trading debut

Starting its debut at Jakarta Stock Exchange, plantation company PT Jaya Agra Wattie Tbk surged 8% or Rp40 to Rp540 at the early trading today. After breaking the highest price at Rp550, the JAWA-coded stock continued to adverse
As of 09.40 a.m. local time, the shares slipped 3% or Rp15 to Rp485. The company has set an initial public offering at Rp500 a share, enabling the company to seize Rp566.20 billion. Jaya Agra, as quoted by today, sold 1.13 billion of new shares or 30% of its enlarged capital.
It plans to use 90% of the proceeds from the IPO to finance a planting program at its rubber and palm oil plantations and develop its units. It will use the remaining 10% to acquire land and working capital.
PT Mandiri Sekuritas and PT OSK Nusadana Securities Indonesia are the joint- lead underwriters. The company derives 60% of its revenue from rubber plantations, 37% from oil palm plantations, and the remaining 3% from coffee and tea plantations.

Disclosure: No position at the stock mentioned above.

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