MARKET DEVELOPMENT
Austindo Nusantara Jaya Will Use IPO Funds for Palm Oil Mill, Buying Land
Austindo Nusantara Jaya Will Use IPO Funds for Palm Oil Mill, Buying Land
10/04/2013 (Jakarta Globe) - Austindo Nusantara Jaya, a mining and plantation company controlled by the Tahija family, plans to offer the public a stake to help finance a planned palm oil processing plant.
Austindo plans to sell 940 million shares, or 24 percent of its stake, in a initial public offering next month, according to a prospectus published in a local newspaper on Tuesday. The company declined to put a total value on the shares.
The company is offering the shares to investors on May 2 and 3, and expects to list the shares on the Indonesia Stock Exchange (IDX) on May 8.
Austindo will use 66 percent of the IPO proceeds to expand its palm plantation business by building a mill in West Kalimantan, and for plantation land acquisition in South Sumatra and West Papua.
About 23 percent of the proceeds will be used to repay debt to JPMorgan Chase; about 8 percent will be used to build a sago flour factory in Papua; about 2 percent will be used for a joint venture biogas plant; and the remaining 1 percent will be used as working capital, the prospectus says.
The Tahija family fortune was built by Julius Tahija — of the Ambonese ethnic group — who, with the support of his Australian wife Jean, established Austindo in 1985.
Julius, who died in 2002, was especially known for his success in founding and managing Bank Niaga, before it was sold to Malaysia’s CIMB Group and renamed CIMB Niaga.
In the prospectus, Austindo said that its net income climbed to $96.3 million last year from $55.6 million in 2011, boosted by the gain from the discontinuation of a unit.
The company’s revenue was little changed, at $185.1 million from $185.3 million a year earlier.
Two other plantation companies have listed on the stock exchange in the past 12 months, according to data from the Financial Services Authority, the capital market regulator. They were Provident Agro and Mutli Ago Gumilang Plantation, while a third, Borneo Citra Indah, delayed its IPO amid concern about the declining crude palm oil price.
So far this year, shares in the agriculture sector have fallen 5.2 percent amid disappointing 2012 earnings results from plantation companies.
Austindo plans to sell 940 million shares, or 24 percent of its stake, in a initial public offering next month, according to a prospectus published in a local newspaper on Tuesday. The company declined to put a total value on the shares.
The company is offering the shares to investors on May 2 and 3, and expects to list the shares on the Indonesia Stock Exchange (IDX) on May 8.
Austindo will use 66 percent of the IPO proceeds to expand its palm plantation business by building a mill in West Kalimantan, and for plantation land acquisition in South Sumatra and West Papua.
About 23 percent of the proceeds will be used to repay debt to JPMorgan Chase; about 8 percent will be used to build a sago flour factory in Papua; about 2 percent will be used for a joint venture biogas plant; and the remaining 1 percent will be used as working capital, the prospectus says.
The Tahija family fortune was built by Julius Tahija — of the Ambonese ethnic group — who, with the support of his Australian wife Jean, established Austindo in 1985.
Julius, who died in 2002, was especially known for his success in founding and managing Bank Niaga, before it was sold to Malaysia’s CIMB Group and renamed CIMB Niaga.
In the prospectus, Austindo said that its net income climbed to $96.3 million last year from $55.6 million in 2011, boosted by the gain from the discontinuation of a unit.
The company’s revenue was little changed, at $185.1 million from $185.3 million a year earlier.
Two other plantation companies have listed on the stock exchange in the past 12 months, according to data from the Financial Services Authority, the capital market regulator. They were Provident Agro and Mutli Ago Gumilang Plantation, while a third, Borneo Citra Indah, delayed its IPO amid concern about the declining crude palm oil price.
So far this year, shares in the agriculture sector have fallen 5.2 percent amid disappointing 2012 earnings results from plantation companies.