INDONESIA: Rubber producer plans IPO for 2016 expansion

State-owned plantation company Perkebunan Nustantara VII (PN VII) plans to raise Rp 2 trillion in total with the issuing of new shares to fund expansion efforts, a senior official at the State Owned Enterprises (SOEs) Ministry said on 15 Jan 2016.

PN VII will conduct an initial public offering (IPO), said Aloysius Kiik Ro, a deputy for restructuring and business development at the ministry. Aloysius said the plan is currently under assessment by a committee of officials from the SOEs, finance, agriculture and health ministries and is expected to be finalized next month. Approval from the House of Representatives is yet to be secured to provide a capital injection to PN VII, Aloysius said.  

Meanwhile, Agoes Riyanto, finance director at PN VII, said the company is preparing its IPO plan, eyeing a window period of between April to December. "We are closely monitoring the commodity market, which currently is still weakening. We hope there is some improvement this year," Agoes said.

The palm oil and rubber producer plans to sell 30 % of its shares to fund new land purchases for its palm oil and rubber plantations.

Source: Daily “The Jakarta Globe”, Jakarta; 16 Jan 2016
(Syed Rashid Ali, Karachi, Pakistan)