23 June 2018

INDOPOS.CO.ID - PT Mahkota Group sold 703 million new shares or 20 through an Initial Public Offering (IPO). Priced at IDR 200 to IDR 250 per share, the company has the potential to raise IDR 140.7 billion to IDR 175.9 billion.

President Director of PT Mahkota Group Usli said that about 60 percent of the IPO proceeds were for the development of the downstream industry through investment in subsidiaries of PT Mutiara Unggul Lestari (MUL), PT lntan Sejati Andalan (ISA, a subsidiary of MUL) for the construction of a Refinery plant. “It is expected that the refinery plant will be completed in June 2019 with a capacity of 1,500 tons per day,” Usli said in Jakarta, Friday (22/6).

He explained that the construction of the Refinery and Kernel Crushing Plant is to add value to the company. The construction of the Refinery and Kernel Crushing Plant, the company can carry out a pemumian system by producing olein (edible oil) and sterin (raw material for margarine and oleochemicals) derivatives and other derivative products.

“The factory will boost profits this year by IDR 50 billion and IDR 123 billion next year,” he said.

Then, around 40 percent of the IPO proceeds will be used as capital for its subsidiaries, namely PT Mutiara Unggul Lestari, PT Berlian lnti Mekar and PT lntan Sejati Andalan.​

Management claims the growth of oil palm plantations is prospective. This is because oil palm plantations are the highest oil-producing crop per hectare (ha) of all vegetable oils. In higher oil-producing countries, the average yield of oil palm is about four tons of oil per ha per year, more than double the oil production per ha obtained by rapeseed and four times the oil production per ha obtained by soybean and sunflower seeds.

Because, Usli said, palm oil requires a smaller plantation area than other oil-producing crops to produce the same amount of oil. The production cost per ton of palm oil is also lower than other oil-producing crops. “CPO production in Indonesia is expected to grow by 7 percent in 2017/2018. As of October 2017, Indonesia's CPO production stood at 34.04 million tons and its CPO exports stood at 26.73 million tons,” Usli continued.

In the corporate action, PT Panin Sekuritas has been appointed as the Underwriter in the Company's Initial Public Offering which will be held in early July 2018. It is expected that this plan will obtain an effective statement on June 29, 2018, so that the Public Offering Period can be carried out on July 3-9, 2018. “And we hope that the company's shares can be listed on the Indonesia Stock Exchange on July 12, 2018,” he concluded.

With the plan, the company's valuation at the end of 2017 PBV 1.3 X -1.7X and 2018 PER 14X-17X 'PBV 1.1-1.4X. (far)

Source : https://indopos.co.id/read/2018/06/22/141909/mahkota-kejar-dana-ipo-rp-175-miliar