MARKET DEVELOPMENT
DSN to Offer 21.3% of Shares in IPO
DSN to Offer 21.3% of Shares in IPO
08/05/2013 (Jakarta Post) - Plantation company PT Dharma Satya Nusantara is planning to sell new shares in an initial public offering (IPO) late this month and early June to raise funds for its business expansion.
Dharma Satya made a public announcement on Monday that it would offload 500 million new shares, which will account for 21.32 percent of its enlarged capital.
The company, whose total assets are worth Rp 5.14 trillion (US$529 million), did not reveal the share price for the IPO.
The company has appointed PT Ciptadana Securities and PT BCA Sekuritas as underwriters for the offering.
Dharma Satya will use 50 percent of funds to be raised from the IPO to increase capital in certain subsidiaries planning to open plantations in new areas in East, West and Central Kalimantan.
About 30 percent of the funds will be used to pay down debts to PT Bank Central Asia.
The company will also use 10 percent of the funds to be earned from the IPO to relocate its wood- processing factories in Gresik and Surabaya to Lumajang in East Java. Another 10 percent will be used as working capital.
Dharmas Satya reaped Rp 3.41 trillion in revenue last year, an increase of around 22 percent compared to Rp 2.78 trillion in 2011.
“As much as 54.8 percent of its total revenues in 2012 came from the palm oil business with the remaining 45.2 percent from the wood products business,” the company said in the announcement.
Dharma Satya sold 252,536 tons of crude palm oil (CPO) last year, an increase of 33 percent from 189,690 tons in 2011.
It also reported a 61 percent increase in palm kernel sales to 34,589 tons in 2012 compared to 21,454 tons in 2011.
The company saw a 2 percent decline in its CPO average selling price to Rp 7.29 million per tons in 2012 from Rp 7.44 million per ton year-on-year.
Most CPO producers in the country posted declining business last year and in the first quarter of this year due to lower selling prices as a result of the weak global economy.
As well as pressure on prices, Dharma Satya saw its cost of goods sold surge 27 percent to Rp 2.45 trillion last year.
Consequently, Dharma Satya’s net profits were 32 percent lower to Rp 252.5 billion last year compared to Rp 274.1 billion a year earlier.
Dharma Satya currently has 181,104 hectares of plantations. It operates five oil palm plantations and four processing factories in East Kalimantan.
The company also has one oil palm plantation and a processing plant in Central Kalimantan. The total processing capacity of its plants is 330 tons oil palm fruit per hour.
The two major shareholders in Dharma Satya are PT Triputra Investindo Arya (31.07 percent) and PT Khrisna Kapital Investma (16.63 percent). The other shareholders have smaller shares of around 6 percent.
Triputra Investindo Arya is part of the Triputra Group founded by tycoon and former president director of Astra International, Theodore Permadi Rachmat.
Following the IPO, Triputra Investindo’s ownership in Dharma Satya will be reduced to 24.45 percent while Khrisna Kapital will hold 13.08 percent.
Dharma Satya has designated the bookbuilding period for May 8 to 17 and offering period from May 31 to June 3.
A listing on the Indonesia Stock Exchange (IDX) is scheduled for June 10.
Dharma Satya made a public announcement on Monday that it would offload 500 million new shares, which will account for 21.32 percent of its enlarged capital.
The company, whose total assets are worth Rp 5.14 trillion (US$529 million), did not reveal the share price for the IPO.
The company has appointed PT Ciptadana Securities and PT BCA Sekuritas as underwriters for the offering.
Dharma Satya will use 50 percent of funds to be raised from the IPO to increase capital in certain subsidiaries planning to open plantations in new areas in East, West and Central Kalimantan.
About 30 percent of the funds will be used to pay down debts to PT Bank Central Asia.
The company will also use 10 percent of the funds to be earned from the IPO to relocate its wood- processing factories in Gresik and Surabaya to Lumajang in East Java. Another 10 percent will be used as working capital.
Dharmas Satya reaped Rp 3.41 trillion in revenue last year, an increase of around 22 percent compared to Rp 2.78 trillion in 2011.
“As much as 54.8 percent of its total revenues in 2012 came from the palm oil business with the remaining 45.2 percent from the wood products business,” the company said in the announcement.
Dharma Satya sold 252,536 tons of crude palm oil (CPO) last year, an increase of 33 percent from 189,690 tons in 2011.
It also reported a 61 percent increase in palm kernel sales to 34,589 tons in 2012 compared to 21,454 tons in 2011.
The company saw a 2 percent decline in its CPO average selling price to Rp 7.29 million per tons in 2012 from Rp 7.44 million per ton year-on-year.
Most CPO producers in the country posted declining business last year and in the first quarter of this year due to lower selling prices as a result of the weak global economy.
As well as pressure on prices, Dharma Satya saw its cost of goods sold surge 27 percent to Rp 2.45 trillion last year.
Consequently, Dharma Satya’s net profits were 32 percent lower to Rp 252.5 billion last year compared to Rp 274.1 billion a year earlier.
Dharma Satya currently has 181,104 hectares of plantations. It operates five oil palm plantations and four processing factories in East Kalimantan.
The company also has one oil palm plantation and a processing plant in Central Kalimantan. The total processing capacity of its plants is 330 tons oil palm fruit per hour.
The two major shareholders in Dharma Satya are PT Triputra Investindo Arya (31.07 percent) and PT Khrisna Kapital Investma (16.63 percent). The other shareholders have smaller shares of around 6 percent.
Triputra Investindo Arya is part of the Triputra Group founded by tycoon and former president director of Astra International, Theodore Permadi Rachmat.
Following the IPO, Triputra Investindo’s ownership in Dharma Satya will be reduced to 24.45 percent while Khrisna Kapital will hold 13.08 percent.
Dharma Satya has designated the bookbuilding period for May 8 to 17 and offering period from May 31 to June 3.
A listing on the Indonesia Stock Exchange (IDX) is scheduled for June 10.