In Process Of Initial Public Offering, Flour Producer Cerestar Sells Dividend Promise In 2023

The factory is owned by a subsidiary of PT Cerestar Indonesia Tbk. (Photo: Doc. Cerestar)

JAKARTA - Wheat flour producer PT Cerestar Indonesia Tbk (TGRU) is preparing to become a public company on July 8. The company released 1.5 billion shares with an initial price of Rp210 per share.

From this action, Cerestar will earn Rp315 billion in funds. The proceeds from the IPO will be injected as additional capital to two subsidiaries, namely PT Harvestar Flour Mills (HFM) and PT Agristar Grain Industry (AGY).

In his statement, Monday, July 4, Cerestar detailed that around 46.67 percent of the proceeds from the IPO will be used to purchase new machines to increase the production capacity of HFM by 600 MT/day. Then, 20 percent will be used to purchase land in the Gresik Industrial Estate as an additional HFM support facility.

In addition, around 33.33 percent will be used for the construction of AGY's warehouse and packing facilities located in Cilegon.

In order to carry out this initial public offering, the company has appointed PT Semesta Indovest Sekuritas as the implementing guarantor of the securities issuance.

In addition to explaining the use of IPO funds, Cerestra is also committed to distributing dividends to shareholders as much as 20 percent of the net profit for the 2022 fiscal year. This plan will be implemented without neglecting the company's financial soundness, and without prejudice to the rights of the General Meeting of Shareholders ( GMS) to determine otherwise in accordance with the company's articles of association.

For information, Cerestar was founded on August 10, 2020 and is a company engaged in the production of wheat-processed flour products such as wheat flour for consumption (food & bakery ingredients) and raw materials for animal feed (feed ingredients).

Currently, the Company through its subsidiaries has a total production capacity of 1,600 MT/day and has five brands of wheat flour products, namely Bakerstar, Falcon, Seagull, Dragonfly and Starfish.

For your information, Cerestar's financial performance in 2021 has skyrocketed. Its sales reached Rp3.42 trillion, up 361.29 percent from Rp741.4 billion in 2020.

Meanwhile, its net profit also increased from Rp. 16.64 billion to Rp. 26.8 billion.