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