Semen Merah Putih Owned By Conglomerate Martua Sitorus Plans On IPO, Targeting IDR 2.16 Trillion Funds

Martua Sitorus conglomerate. (Photo: Doc. Forbes)

JAKARTA - PT Cemindo Gemilang Tbk will soon be listed on the Indonesia Stock Exchange (IDX) through an initial public offering (IPO) scheme. The company will use the issuer code CMNT later.

In the prospectus published on the e-IPO page, quoted on Tuesday, August 10, this Merah Putih cement producer will issue a maximum of 2.71 billion new shares. This amount is equivalent to 15 percent of the issued and paid-up capital after the initial public offering of shares.

The offering price set by CMNT ranges from IDR 600 to IDR 800 per share. This means that Cemindo Gemilang can earn between IDR 1.62 trillion to IDR 2.16 trillion from this corporate action.

CMNT will use all proceeds from the initial public offering after deducting share issuance costs for five purposes. First, about 58 percent will be used by CMNT for working capital.

Second, about 17 percent will be used to repay a portion of the principal debt of the syndicated loan. Third, about 11 percent will be used by CMNT to pay part of the debt to Sinoma International Engineering Co Ltd.

Fourth, about 8 percent will be used for capital expenditure or capital expenditure (capex). And fifth, about 6 percent will be used to pay part of the debt to PT Sinoma Engineering Indonesia.

Photo: Doc. Red and White Cement

PT Mandiri Sekuritas, UBS Sekuritas Indonesia, PT Ciptadana Sekuritas Asia acted as underwriters. Meanwhile, PT Mandiri Sekuritas and PT Ciptadana Sekuritas Asia are the implementing underwriters for the issuance of securities.

The public offering period is estimated to last from August 31 to September 2, 2021. While the listing date on the IDX is estimated to be September 6, 2021.

For information, Semen Merah Putih has made changes to its articles of association several times, where at the time of establishment, CMNT's shareholders consisted of WH Investments Pte. Ltd. (95 percent) and Gama Group (5 percent).

WH Investments is a shell company that is fully controlled by the conglomerate Martua Sitorus. Another name for CMNT's shareholder is Darwin Indigo, Martua's nephew of his older brother Ganda Sitorus.

PT Gama Group is said to be controlled by Andy Indigo (50 percent) who is Darwin Indigo's brother, and Martua's daughter, Jacqueline Sitorus with 50 percent ownership in PT Gama.

Based on Forbes data as of December 2020, Martua Sitorus is the 12th richest person in Indonesia. His wealth reaches USD 2 billion or approximately IDR 29 trillion.