Jan 17, 2012

Triputra Group & exaggerated IPO target?

Despite a bumpy stock market globally, Triputra Group, that is owned by Indonesian stellar businessman Theodore Permadi Rachmat, is driving its operating subsidiaries to taste the water in the primary market with an aggressive IPO target of US$1.2 billion or nearly Rp12 trillion. 
In Indonesia, 14 IPOs last year were so-called 'under water stocks' due to their prices dropped below the IPO price as of December 28.
About 25 newly publicly listed companies had tasted the water of the primary market last year. Two largest IPOs were PT Garuda Indonesia Tbk (GIAA) and PT Salim Ivomas Pratama Tbk (SIMP) with total proceeds of Rp4.75 trillion and Rp3.78 trillion.  
CFO Arya Erida Djuhandi at PT Triputra Investindo said Triputra Group is exploring opportunities to sell down five or six subsidiaries in the IPO market this year. 
"In the first stage, we plan to dispose Dharma Group, Pako Group, Padang Karunia, and other units," he said as quoted by Bisnis Indonesia.  As the pre-IPO strategy, Triputra Group will proceed rights issue.
In the palm oil and rubber plantation business, Triputra Group manages two companies dubbed PT Kirana Megatara and PT Triputra Agro Persada. Kirana is claimed as the largest company with facility of rubber crumb processor of 640,000 tons capacity a year. Triputra Agro operates palm oil plantation and is claimed the 8th largest CPO producer in Indonesia with 243,000 tons annually. 
In total, Triputra Agro manages 277,000 hectares of land bank in Sumatra and Kalimantan with planted area of 111,00 hectares.
In the manufacturing industry, Triputra Group controls Binabusana Internusa with products focusing on textile and garment, while Dharma Group is producing auto spare parts, industrial equipments, and healthy equipments.

Disclosure: No position at the stock mentioned above.

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