May 10, 2011

Salim Ivomas IPO at Rp1,060-Rp1,700

PT Salim Ivomas Pratama Tbk (SIMP), an edible oil, vegetable fat, and sugar care producer, plans to spend Rp2.2 trillion capital expenditure this year.
Salim Ivomas will use proceed of initial public offering (IPO) to fulfill the capex. The company aims to raise Rp3.35 trillion-Rp5.37 trillion or US$617.47 million, equals to Rp1,060-Rp1,700 per share.
Salim Ivomas Pratama Tbk (SIMP) today launches 3.16 billion of new shares or 20% of its enlarged capital during inital public offering (IPO) scheduled on June 8 2011.
PT Kim Eng Securities, PT Deutsche Securities Indonesia, and PT Mandiri Sekuritas have obtain a full commitment underwriting mandate from Salim Ivomas, said an official prospectus published.
About 40% of the IPO proceed will be used by Salim Ivomas to pay bank loan facilities. The company will use 50% of the proceed to bankroll plantation division for new planting, plantation maintenance, establishment of infrastructure facilities, and the remaining is aimed to support edible and vegetable fat division.
SIMP is a subsidiary of Indonesia's largest instant noodle maker PT Indofood Sukses Makmur Tbk (INDF), controlled by Salim family, with focus business to produce edible oil, margarine, and vegetable oil products.
The company has exported its edible oil and vegetable fat products to 42 countries such as China, Nigeria, Angola, Sri Lanka, Phillippine, and Timor Leste.
Post IPO, Indofood Oil and Fats Pte Ltd will control 72% shareholding in SIMP, Indofood Sukses will own 6.40%, PT Mandiri Investama Sejari will hold 1.03% stake, PT Bina Makna Indopratama and PT Multi Langgeng Nusantara will hold 0.31% and 0.26% respectively, and public investor will own 20%.

Disclosure: No position at the stock mentioned above.

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