Jun 17, 2011

Bumitama Agri scouts US$200 mio IPO

Bumitama Agri, a mid-sized Indonesian palm oil plantation firm, is targeting a Singapore listing in the third quarter of this year to raise as much as US$200 million, sources familiar with the deal told Reuters on Friday.
HSBC and DBS are joint bookrunners for the deal. "It's still in the early stages, but it's looking at about US$100 million-US$200 million," a source familiar with the deal said.
A second source said Bumitama Agri and its bankers will begin a series of meetings to educate investors starting later on Friday in Singapore, before moving onto Hong Kong next week and London the week after. 
In October last year, DBS Indonesia and HSBC together with its syndication banks chanelled US$135 million facility, an upsize from originally ammount of US$110 million. Acted as mandated lead arrangers for the facility are DBS Indonesia and HSBC Indonesia.
Being subsidiary of Harita Jayaraya, a resourced-based group company which main businesses include mining, logging and palm oil plantation, Bumitama Gunajaya Agro Group (BGA Group) is focusing on palm oil plantation business. 

The initial US$110 million syndicated loan signed on May 2010, is used by the company to finance the expansion of palm oil plantation whilst the additional upsized fund will be used for acquiring palm oil plantation companies to further enlarge company’s CPO plantation estate.
BGA Group is a group of companies moving in palm plantation and palm oil mills. BGA is one of business division of Haruta Group. It started its business in 1997 when it acquired PT Karya Makmur Bahagia. BGA Group operates its business in four provinces, Central Kalimantan, West Kalimantan, East Kalimantan, and Riau. BGA Group is consisting of 34 palm plantations on 95,783 hectares (planted area) and four palm oil mills with total capacity of 240 tons per hour by end of June last year.
Disclosure: No position at the stock mentioned above.  

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