25 June 2018

JAKARTA - PT Mahkota Group Tbk will list its shares on the Indonesia Stock Exchange (IDX) by offering as many as 703.68 million shares to the public through an initial public offering (IPO) scheme or equivalent to 20 percent of the issued and fully paid capital after the IPO.

The IPO price was offered between 200-250 rupiah per share, resulting in fresh funds of around 140.73-175.92 billion rupiah. The Company's shares were oversubscribed twice. And, acting as underwriter is PT Panin Sekuritas Tbk.

Director of Panin Sekuritas, Prama Nugraha, said the underwriter of Mahkota shares, a crude palm oil (CPO) plantation company, will continue to record incoming requests. “For those that are pooled and allotted, we will still discuss it with the issuer because we see the demand is quite high.

Later we will determine how much is fixed and will try to accommodate the pooling that has entered during the public offering,” he said in Jakarta, Friday (6/22). Mahkota's IPO price valuation uses price to book value (PBV), although on the other hand referring to the financial statements for the last three years, the Company's net profit has decreased.

Prama explained that previously there were considerations in making IPO price valuations between using PBV or price to earning ratio (PER). When using PER, it refers to the profit in 2017 alone has decreased, even the decline in profit has occurred for the last three years. This is due to weather conditions and fires that occurred in 2015, which had an impact on the next two years (2016 and 2017).

However, after the disaster subsided, palm oil production increased again and CPO production could also increase in 2018. “If we use the 2017 PER, it is irrelevant and we have to look again at the 2018 PER,” he explained. The 2017 net profit that was successfully pocketed was 17 billion rupiah, while the 2018 net profit target jumped to 50 billion rupiah.

According to Prama, if the 2018 PER is used, referring to the company's net profit target this year of IDR 50 billion, the PER is 14-17 times. Meanwhile, the 2018 PBV alone is around 1.1-1.4 times. Regarding the IPO price, according to Prama, the determination will not only look at the price but also pay attention to the investor profile.

“Regardless of what the industry conditions are like, this IPO continues to run. The expansion must go on and cannot wait for a good timing to start,” he added. The effective date is expected to be published on June 29, 2018. Public offering period July 3-9, 2018. Listing on the IDX in early July 2018.

Source : http://www.koran-jakarta.com/ipo-mahkota-kelebihan-permintaan-dua-kali/