Tunas Baru Lampung to go public next year<\/p>\n
JAKARTA (JP): Crude palm oil (CPO) producer PT Tunas Baru
\nLampung will launch an initial public offering (IPO) in January
\nnext year to raise between Rp 173 billion (US$25 million) and Rp
\n322 billion to finance its expansion.<\/p>\n
An executive of PT Dinamika Usaha Jaya, the lead underwriter
\nof the initial public offering (IPO), said on Friday PT Tunas
\nBaru Lampung (TBL) planned to sell between 96.15 million and
\n140.38 million new shares during the offering period from Jan. 12
\nto Jan. 14.<\/p>\n
The IPO will lower the founding shareholders' stake in the
\ncompany to 58 percent, Benny Sudrata also said.<\/p>\n
He said the shares, with a par value of Rp 500, would be sold
\nat between Rp 1,800 and Rp 2,300 each, or between three and four
\ntimes the price earning ratio for 2000.<\/p>\n
TBL vice president Sudarmo Tasmin said about 52.08 percent of
\nthe IPO proceeds would be used to construct two new CPO plants;
\n17.36 percent to increase the production capacity of the existing
\nplants; 19.74 percent to increase ownership in one of the
\ncompany's subsidiaries; 8.56 percent to increase oil palm crops;
\nand 2.26 percent to strengthen the company's working capital.<\/p>\n
He also said the company sold about 70 percent of its output
\nduring the first half of this year on the domestic market, while
\nthe remaining 30 percent was exported to the Netherlands, China,
\nMalaysia, Singapore and Hong Kong.<\/p>\n
TBL, which operates crude palm oil plants in Lampung,
\nPalembang and Surabaya, has a total land concession of 62,015
\nhectares in Lampung. Currently, some 12,000 hectares of this land
\nhas been cultivated, Sudarmo said.<\/p>\n
The company booked a Rp 37.7 billion net profit during the
\nfirst half of this year, a drastic increase over the Rp 18
\nbillion net profit it saw in the whole of last year.<\/p>\n
Sudarmo was optimistic the company would realize a net profit
\nof Rp 82 billion this year on the back of the company's
\nincreasing revenue and the country's improving business climate.<\/p>\n
TBL was established in 1973 and is an affiliate of
\nagricultural based consumer products manufacturer Sungai Budi
\nGroup. The group, founded in 1947, is the parent company of
\npublicly listed tapioca starch manufacturer PT Budi Acid Jaya.
\n(udi)<\/p>",
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