23 June 2018

KONTAN.CO.ID - JAKARTA. PT Mahkota Group Tbk will focus on building a refinery and kernel crushing plant after conducting an initial public offering (IPO).

The factory will be built in Bathin Sobanga Village, Bengkalis Regency, Riau Province. The construction target takes eight months, starting three months after the company receives the IPO proceeds.

President Director of Mahkota Group Usli Sarsi said that the construction of the refinery and kernel crushing plant requires an investment of Rp 330 billion. The source of funding of 60% will be taken from the proceeds of the share offering, and the rest from internal companies and bank loans.​

“The concentration now is more on the downstream industry, in accordance with the government's recommendation so that raw materials do not continue to be exported, so we open the refinery industry. Refineries are lacking in the country. This will save domestic costs and export costs,” said Usli, Friday (22/6).

The refinery plant will have a capacity of 1,500 tons per day and the kernel crushing plant will have a capacity of 200 tons to 400 tons per day. “Completion has reached 50%, it's just a matter of construction,” Usli added.

Currently, the company still conducts domestic marketing, including to the Riau and North Sumatra regions. Products produced include crude palm oil (CPO), palm kernel (PK) and other derivative products supported by six factories.

As an illustration, Mahkota Group will release 20% of its issued and fully paid capital through an IPO. Shares will be offered in the price range of IDR 200-250 per share. That way, the company is aiming for fresh funds of between IDR 140.74 billion and IDR 175.92 billion.

Source : http://investasi.kontan.co.id/news/mahkota-group-butuh-dana-rp-330-miliar-untuk-bangun-pabrik