06 July 2018

Bisnis.com, JAKARTA - Palm oil processing company PT Mahkota Group Tbk. conducted an initial public offering with a portion of 20% of the total issued and fully paid capital.

The total shares to be released in the Initial Public Offering (IPO) action are 703,688,000 shares with an offering price of IDR 225 per share. The company aims for IPO funds of around IDR 158.32 billion.

The public offering period of the company's shares took place on July 3-9, 2018, while the listing on the Indonesia Stock Exchange (IDX) was carried out on July 12, 2018 with the stock code MGRO.

President Director of Mahkota Group Usli Asri stated that the IPO proceeds will be used as capital for business expansion.

“Around 60% will be used for the development of the downstream industry through investment in a subsidiary of PT Mutiara Unggul Lestari (MUL), namely PT Intan Sejati Andalan (ISA),” he said in an official statement received by Bisnis, Thursday (07/5/2018).

MUL is a subsidiary of Mahkota Group.

The development that Usli is referring to is the construction of a refinery plant and Kernel Crushing Plant in Bengkalis Regency, Riau. The plant will start construction within 3 months of the IPO and is expected to take 8 months.

The existence of the two factories is expected to support the company to carry out a refining system that can produce derivative products so as to provide added value and increase revenue.

The remaining 40% of the IPO proceeds will be used as working capital for its subsidiaries, namely MUL, PT Berlian Inti Mekar, and PT Intan Sejati Andalan.

Editor : Annisa Margrit

Source : http://market.bisnis.com/read/20180705/192/813158/bersiap-ipo-mahkota-group-lepas-20-saham