Who Is Conglomerate Bambang Sutantio, The Entrepreneur Who Will Have A Wealth Of IDR 19 Trillion After Cimory IPO Of IDR 3.76 Trillion?

The founder of Cimory, conglomerate Bambang Sutantio. (Photo: Doc. Cimory)

JAKARTA - PT Cisarua Mountain Dairy Tbk alias Cimory is preparing to take the floor on the Indonesia Stock Exchange (IDX) through an initial public offering (IPO). A milk producer for premium consumers known as yogurt products and plans to release 1.19 billion pieces with an exercise price of IDR 2.780 to IDR 3.160.

Through this IPO scenario, the issuer that will use the CMRY stock code has the opportunity to reap as much as IDR 3.76 trillion in funds. The company appointed PT Mandiri Sekuritas and PT CLSA Sekuritas Indonesia as the implementing underwriters for the securities issuance.

The proceeds from the IPO will later be used for additional production facilities in the form of property, plant, and equipment (33 percent). Furthermore, CMRY's subsidiary, PT Macroprima Panganutama, will receive an additional jumbo investment of 25 percent of the IPO funds.

In the prospectus displayed in the E-Ipo, quoted Thursday, November 18, Macroprima Panganutama (MP) is a company with a processing and canning business sector and has been operating commercially since 1993. Of the total turnover of CMRY, a subsidiary that is 99.99 percent owned by the company this accounted for 25.62 percent of revenue and constituted 30.54 percent of the company's assets.

By MP, this fund will be used to increase the capacity of production facilities in Semarang and West Java (80 percent), while 20 percent of the capital injection will be used for operational financing. As much as 20 percent of the IPO funds were also made to increase the capital of the distributor company PT Macrosentra Niagaboga.

At the same time, 15 percent of the IPO funds were placed for massive chiller spending of up to 68.000 units to be distributed to stores and retailers. This fund will also enhance Miss Cimory including supporting training and development facilities. While the other 7 percent will be used by the company for working capital.

With all these post-IPO strategies, Cimory's management is confident that they will be able to strengthen their business in the country. Moreover, their yogurt products are considered to be the best-selling in the market.

Photo: Doc. Cimory

So who is the real figure behind Cimory's success? In CMRY's IPO prospectus, it is stated that the controlling and ultimate beneficiary of the company is conglomerate Bambang Sutantio.

Bambang started the premium milk business in 2004. When he was pioneering, Bambang worked with a businessman from the Netherlands, Theodorus Cornelis Johannes Swart.

Bambang holds 60 percent of Cimory's shares, while the partner holds 40 percent. But as time went on, Cimory finally walked without Cornelis.

After undergoing several changes, CMRY's shareholders before the IPO were dominated by Bambang (63 percent) and his family. Other name details are Farell Grandisuri Sutantio (9 percent), Axel Sutantio (9 percent), Wenzel Sutantio (9 percent), Tiffany Adikoesoemo (5 percent), PT Cimory Dairy Shop (3 percent), PT Cimory Hospitality Sejahtera (1 percent) and PT Chocomory Cokelat Persada (1 percent).

Bambang also runs other businesses outside the Cimory conglomerate. He is listed as owning PT Bavarin Culinary Haus (70 percent), PT Macrocita Ardanasejati (50 percent), PT Sanubari Mitra Nusantara (25 percent), PT Macrotama Binsastika (57 percent), to PT Tatanan Sumber Berkat.

Meanwhile, in CMRY, Bambang has placed his children in management. Farell Grandisuri, Axel Sutantio, and Wenzel Sutantio both as directors and commissioners. Only Alexander S. Rusli (independent commissioner) and Bharat Shah Joshi (Director of Finance & Investor Relations) are not related to the Bambang family.

Although known as yogurt products, Bambang's initial business was MP (Macro group) meat processing company, Kanzler sausage producer. It was only in 2004 that Cimory operated with the concept of accommodating farmers' milk.

Bambang continues to develop his products, including producing pasteurized liquid chicken eggs with the trademark Java Egg Specialties (JESS). Cimory, which was initially only part of the business grew into a major source of income. In the prospectus, CMRY has been confirmed as a holding despite coming later.

Bambang continues to push Cimory into new business order. In 2017, Cimory has started pioneering international business by expanding into China and Vietnam. Currently, the company has partnered with 6.000 cattle breeders throughout Java.

With Bambang and his children owning around 6.05 billion shares of CMRY, and assuming the upper limit of the IPO price is IDR 3.160, then Bambang's total wealth is estimated to reach a total of IDR 19.11 trillion from CMRY or about 1.33 billion US dollars.

The following is an indication of Cimory's transaction schedule until it is listed on the IDX:

- Initial Offering Period: November 10 -17, 2021

- Estimated Effective Permit: November 26, 2021

- Estimated Initial Public Offering Period: November 30 – December 2, 2021

- Estimated Allotment Date: December 2, 2021

- Estimated Distribution of Shares Electronically: December 3, 2021

- Estimated Listing Date on the Indonesia Stock Exchange: December 6, 2021