16/07/2012 (Jakarta Globe) - Provident Agro, a palm-oil producer partly controlled by Saratoga Capital, plans to sell a 20 percent stake in itself later this year.

The company has appointed Indo Premier Securities to help it arrange the initial public offering, which is expected at the end of the third quarter this year, Hoesen, a director for assessment at the Indonesia Stock Exchange, said on Thursday.

Officials at Provident were not available for comment.

Hoesen said the IPO would help the local bourse meet its target of having 25 companies listed by the end of the year. So far, there have been 13 companies listed in the local market this year.

Regional development bank Bank Jatim, which raised Rp 1.2 trillion ($127 million) in an IPO last week, made a strong trading debut on Thursday. Its shares rose 1.1 percent to Rp 445 on the stock market on Friday, the second trading day after its debut on Thursday.

News of Provident Agro’s planned IPO came after the local market got a boost from investors with the main stock gauge rising 0.9 points to 4,019.67. The Jakarta Agribusiness Index, which comprises 16 companies including Astra Agro Lestari and London Sumatra Plantations, rose 0.9 percent to 2,358.60.

The crude palm oil price was quoted at RM 3,065 on Friday, according to the website PalmOilHQ.

Should Provident go ahead with the plan, it has to compete with rivals such as Astra Agro Lestari, the agriculture unit of Astra International.

Hoesen, however, did not provide any other details on the IPO.

Provident Agro is controlled by Saratoga Capital and Provident Capital. Saratoga Capital was founded by Edwin Soeryadjaya and Sandiaga Uno. Saratoga also controls 51 percent of Mandala Airlines.

Provident Capital is controlled by Winato Kartono and Hardi Wijaya Liong. They all are controlling shareholders in Tower Bersama Infrastructure.

Provident Agro, set up in 2006, has 140 hectares of land in Kalimantan, Sumatra and Sulawesi.

Provident is a leading crude palm oil producer. It currently has 40 hectares of productive plantation land on the three territories.