Cimory Owned By Conglomerate Bambang Sutantio Announces IPO Offer Price Of IDR 3,080 Per Share, Potential To Raise IDR 3.66 Trillion

JAKARTA - Prospective issuer, PT Cisarua Mountain Dairy Tbk alias Cimory announced an offering price of IDR 3,080 in an initial public offering (IPO). The company owned by conglomerate Bambang Sutantio has the potential to reap Rp3.66 trillion in funds from this action.

In a prospectus published in a national daily, this premium milk producer will be listed under the stock code CMRY. They released 1,190,203,000 (rounded up by 1.19 billion) shares with a nominal value of Rp. 10, which represents 15 percent of the company's paid-in and issued capital after the IPO.

"The offering price offered in the initial public offering is Rp3,080 per share," Cimory's management wrote, quoted Monday, November 29.

Thus, Cimory will receive fresh funds of up to Rp3.66 trillion. Meanwhile, the company will allocate 0.06 percent of the shares offered in the IPO for the share allocation program to employees or 700,000 shares.

Furthermore, the company will issue stock options for the MESOP program of 10 percent of the issued and fully paid capital after the IPO or as many as 674.44 million shares. The initial public offering period will start tomorrow, November 30, 2021, until December 2, 2021.

The allotment date on December 2, 2021, the date for electronic distribution of shares on December 3, 2021, and the date of listing on the Indonesia Stock Exchange on December 6, 2021.

Cimory Finance Director Bharat Joshi said the funds will be used for the company's expansion needs, both in terms of production and production.

"In the short term, we will immediately fulfill the demand for Cimory Pouch and LHT milk in the market with additional capacity in 2022," Bharat said in a public expose some time ago.

Furthermore, the company will also add a distribution center (DC) which will soon be built so that it will double the current storage capacity. In detail, the funds obtained in this IPO will be used by Cimory at 33 percent for capital expenditures related to additional capacity for production facilities in the form of property, plant and equipment.

Furthermore, about 25 percent is for capital deposit to a subsidiary, namely PT Macroprima Panganutama (MP) which works on food processing and canning. Meanwhile, this fund will mainly be used by MP to increase capacity for production facilities, as well as for working capital.

Cimory will use about 20 percent of the IPO funds to deposit capital to its subsidiary PT Macrosentra Niagaboga (MN), which is engaged in agents and distributors.

Approximately 15 percent of the IPO funds will be used for capital expenditures related to distribution channel expansion in the form of additions in stores and retail and supporting facilities related to increasing the number of Miss Cimory which includes training and development. While the remaining 7 percent will be used for Cimory's working capital to finance daily operational needs.