22 June 2018

A company engaged in the palm oil processing industry, PT Mahkota Group is preparing to become a public company by releasing shares through an Initial Public Offering ( IPO ) scheme. The company plans to list on the Indonesia Stock Exchange on July 12.

The company from North Sumatra will release 703,688,000 shares or around 20% of the total issued capital after the IPO. The share price to be offered to the public is in the range of IDR 200-250 per share.

“We want to offer our company shares to the public to our relations and especially to our employees because they have helped develop the company's business. So it's not just a sense of belonging but actually owning the company  shares  so that it can develop the company's business internationally,” said President Director of Mahkota Group Usli during a press conference at Pacific Place Hotel, Sudirman, South Jakarta, Friday (22/6).

Thus, the company targets to obtain fresh funds of around IDR 140.73 billion-175.92 billion from this corporate action. The plan is to use the funds to develop the company's business in the future.

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In detail, 60% will be used by the company to develop the downstream industry through investment in its subsidiaries, namely PT Mutiara Unggul Lestari (MUL), PT Intan Sejati Andalan (ISA) which will be used for the construction of a refinery plant and Kernel Crushing Plant. While the rest will be used for working capital.

“100% of the funds obtained will be used for business development,” he said.

Usli admitted that he is optimistic that this year the growth of oil palm plantation companies will be quite good. Moreover, he estimates that CPO production in Indonesia will grow 7% year-on-year (yoy) in 2018.

“Indonesia is the largest CPO producer in the world. Especially now that the European Union has lifted the ban on palm oil until 2030, this is certainly a good prospect,” he said.

To smooth out this corporate action, the company has appointed PT Panin Sekuritas as the underwriter. The offering period itself will be held July 3-9, 2018.

Source : https://kumparan.com/@kumparanbisnis/siap-ipo-mahkota-group-tawarkan-harga-rp-200-250-saham