On The Stock Exchange, NSSSS Palm Oil Issuers Touched IDR 138

Share illustration (Photo: Doc. Antara)

JAKARTA - PT Nusantara Sawit Sejahtera Tbk (NSS) officially listed shares on the Indonesia Stock Exchange (IDX) through the initial public offering (IPO) mechanism.

today is March 10, 2023. Thus, NSSS became the 27th listed company on the IDX in 2023 and was listed on the development board.

The issuer with the NSSS code was opened green, at 10:29 WIB, up 3.94 percent to the level of Rp132 in the first session of trading opening. NSSSS shares were transacted in the price range of Rp126-Rp138 per share.

In this corporate action, the Company released 3.568 billion shares to the public. The number of shares offered reached 15 percent of the NSS paid-up capital after the initial public offering.

The Company completed its initial bid (book building) on February 17-22, 2023. After obtaining an effective statement from the Financial Services Authority (OJK) on February 28, 2023, NSS then continued with the initial public offering period of shares from March 2 to 8, 2023.

According to Teguh Patriawan, President Director of NSS, the nominal value of the Company's shares is IDR 50 per share. "The initial price of this NSS share is IDR 127 per share. That means the funds we collected through this IPO share amounted to IDR 453.165 billion," he told the media, Friday, March 10.

Teguh said, during the public offering period, based on the e-IPO system, the Company recorded an oversubscribed of around 13.9 times. "This shows the high interest of investors in the NSS share IPO," added Teguh.

Along with the initial public offering, the NSS also published 1.784 billion series I warrants, or 8.82 percent of the total issued and fully paid shares at the time the registration statement in the context of the IPO was delivered.

Each new holder of two shares has the right to receive a series I warrant, where each holder of a series I warrant has the right to buy a new share with an exercise price of Rp190 per share. If everything is carried out by the waran holder of series I, the funds that will be obtained by NSS reach Rp338,982 billion," said Teguh.

PT Mitra Agro Dharma Unggul is the majority shareholder of the NSSSS before the IPO with a ownership percentage of 59.11 percent. Then Teguh Patriawan owns 17.12 percent of the shares, PT Nusantara Makmur Lestari 10.75 percent, Yantoni Kerisna 6.14 percent, Thomas Tampi 5.00 percent, and PT Bina Palangka Makmur 1.88 percent.

According to Teguh, the proceeds from the IPO are planned to be used to finance the construction of production facilities, new planting financing, and working capital for subsidiaries. The funds will be channeled through a capital investment mechanism.

PT Borneo Sawit Perdana (BSP) is one of the subsidiaries who will receive capital injections with IPO proceeds. Around 33 percent will be used for capital expenditure in building a 40 hectare (ha) palm oil mill with a capacity of 60 tons of fresh fruit bunches (FFB) per hour and supporting facilities.

Then, around 9.4 percent will be used to fulfill BSP's working capital in purchasing fertilizers and agrochemicals or agricultural chemicals.

PT Bina Sarana Sawit Utama (BSSU) will also receive an injection of IPO proceeds, around 47 percent will be used for capital expenditures in the context of new planting oil palm plantations.

Of these, 15 percent of them will be used for land acquisition covering an area of 6,831 ha so that they have the status of right to use (HGU).

The remaining budget will be used for the nursery process to fertilization during the period without generating. Then, around 10.6 percent of the IPO proceeds will be distributed to PT Prasetya Mitra Muda to fulfill PMM's working capital in purchasing fertilizers and agrochemicals or agricultural chemicals.

"The funds obtained by NSS from the results of the implementation of series I warrants will all be used for capital expenditures to subsidiaries with a capital investment mechanism," he said.

Teguh added that acting as the underwriters for the issuance of securities in the NSS IPO were PT BRI Danareksa Sekuritas, PT Mirae Asset Sekuritas Indonesia, PT Sucor Sekuritas, and PT Samuel Sekuritas Indonesia.