Palm Oil Company Owned By The Conglomerate TP Rachmat Plans IPO, IDR 88 Billion To Build Factory

TP Rachmat conglomerate. (Photo: Doc. Antara)

JAKARTA - A plantation company from the Triputra group, PT Triputra Agro Persada, plans to take the floor on the Indonesia Stock Exchange by holding an Initial Public Offering (IPO) in April 2021.

Quoting Bisnis.com, Thursday, March 18, the company owned by conglomerate TP Rachmat will sell as many as 925 million shares with a nominal value of IDR 100 per share. This amount is equivalent to 4.65 percent of the company's total issued and fully paid-up capital after the IPO.

The management of Triputra Agro, a company owned by the number 16 richest person in Indonesia, explained that the proceeds from the IPO action after deducting the cost of emissions will be used by around 79 percent to increase equity participation in a subsidiary, namely PT Agro Multi Persada (AMP).

Furthermore, the increase in equity participation is to maintain the percentage of AMP's capital ownership considering that the subsidiary will increase its issued and paid-up capital. And the money from the capital increase will be used by AMP for capital expenditure and working capital for a subsidiary of PT Sukses Karya Mandiri (SKM) in connection with the factory construction plan.

The construction of the factory requires funds of around IDR 88 billion, while for the working capital of SKM, IDR 47 billion. Construction of the factory will begin in the second quarter of 2021 with a target of completion in 2022.

The remaining 21 percent of IPO funds will be used by the company as working capital in the form of purchasing fertilizers. The initial offering period of Triputra Agro Persada is on 18-19, 22-25 March 2021.

Meanwhile, the estimated public offering period is April 5-6 2021, the estimated allotment date is April 8, 2021. And the company plans to officially list its shares on the Indonesia Stock Exchange on April 12, 2021.

Acting as the underwriter is PT Ciptadana Sekuritas Asia. Meanwhile, the composition of the company's shareholders is currently the largest held by PT Persada Capital Investama at 24.3 percent, followed by PT Triputra Investindo Arya with 23.54 percent, Salween Investment Pte with 21.69 percent, Gochean Holdings Incorporated 15.82 percent, and PT Daya Adicipta Mustika as much as 14.65 percent.