Entering The IPO Queue On The Stock Exchange, Broiler Breeding Company From Cianjur Eyes IDR 77 Billion In Funds

Photo: Dewi Shri Farmindo's offer document

JAKARTA - The queue of companies to release their shares to the public by means of an initial public offering (IPO) mechanism has increased again. This time it came from PT Dewi Shri Farmindo Tbk.

This broiler cultivation company and retail trade of livestock will sell 700 million shares or equivalent to 35 percent of the total issued and fully paid capital. The offering price starts from IDR 100 to IDR 110 per share.

Citing the offer document posted on the e-ipo.co.id website, Monday 27 June, Dewi Shri estimates that the IPO proceeds will start from Rp. 70 billion to Rp. 77 billion.

The company, which will receive the DEWI stock code, begins the offering period today until June 29, to obtain a permit effective on July 8, 2022. Then, the public offering period takes place on July 11-13, with an estimated listing on the Indonesia Stock Exchange (IDX) in July 15 next.

The document also explains that around 11.88 percent of the proceeds from the IPO or IDR 7.48 billion will be used by the company to purchase affiliated land. Then 5.83 percent or Rp3.67 billion for the purchase of non-affiliated land covering an area of 10,773 square meters.

The company will also use 10.32 percent or Rp. 6.5 billion for the construction of RPA facilities, Rp. 9.98 billion or 15.85 percent to build a commercial farm boiler facility, and the rest for working capital which will be used to buy day old chicks (DOC). and purchase of chicken carcasses.

During the IPO, Dewi Shri appointed PT KGI Sekuritas Indonesia and PT Binaartha Sekuritas as underwriters for the issuance.

As additional information, until March 31, 2022, Dewi Shri has assets of IDR 90.53 billion with equity of IDR 73.74 billion. In this period, it summarizes sales of Rp.23.39 billion with a net profit of Rp.1.41 billion.