Aiming For Funds Of Up To IDR 530 Billion, Owner Of 41,775 Hectares Of Palm Oil Plantation In Medan Is Ready To Release Shares To The Public

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JAKARTA - PT Sumber Tani Agung Resources Tbk plans to release shares to the public through an initial public offering (IPO) mechanism. The company, which manages 41,775 hectares of oil palm plantations in Medan, North Sumatra, is eyeing IDR 412.22 billion to IDR 530.63 billion.

Quoting the old e-ipo.com, the company that was founded in 1970 will release 877.07 million shares or 8.06 percent of the company's issued and fully paid capital. Sumber Tani Resources' share price ranges from IDR 470 to IDR 605 per share.

The offering of the company's shares has started today (Wednesday, February 9) until February 15, 2022.

In this action, the company appointed PT CIMB Niaga Sekuritas and PT DBS Vickers Sekuritas Indonesia as underwriters.

If all goes well, the company will use the proceeds from the IPO for several needs. One of them is for capital expenditure (Capex).

The company's Capex budget will flow to downstream industry development through its subsidiary, PT Sumber Tani Agung Oils & Fats.

In addition, around 54 percent of the proceeds from the IPO will be used for the construction of a refinery with a capacity of 2,000 metric tons of CPO per day. Then 23 percent will be used to build dock facilities, and another 23 percent will be used for refining tanks with a capacity of 35,000 metric tons.

As additional information, Sumber Tani Resources is currently owned by 6 parties. Among them are PT Malibu Indah Lestari (40 percent), PT Kedaton Perkasa (31.48 percent), Russel Maminta Wijaya (14.42 percent), Gani (6.91 percent), Tanjung Lele (4.09 percent) and Hardi Mistani (3.1 percent).