Indopoly Sets IPO Price at Rp 250 per Share

Indonesia Finance

Monday, 28 June 2010 19:30

PT Indopoly Swakarsa Industry Tbk has set the price of its initial public offering at Rp 250 per share, with the proceeds targeted for Rp 428 billion.

The company will float 2.3 billion shares or 35.17% of the company's enlarged capital. At the same time, it will also issue 460.04 million warrant as "sweetener"or 6.67% of enlarged capital.

Mardy Sutanto, Head of Investment Banking PT OSK Nusadana Securities that acts as underwriter, told the press on Monday that the offering was oversubscribed by two times as investors expect the company's earning growth to be inline with the growth of consumer industry.

He said Indopoly targets its revenue to grow by 30 percent to Rp 1.6 trillion this year, compared to Rp 1.2 trillion it earned last year. "The revenue will be boosted by the existing additional capacity after the company installed new poly-propylene plant last year," Mardy said.

The company had earlier stated in its IPO prospectus that around Rp 450 billion of the proceeds will be used to strengthen its capital expenditure, i.e. to expand its biaxially-oriented polyester (BOPET) production capacity.

In May 21, the company kicked off the construction of its new BOPET film plant with a capacity of 20,000 tons per year. The plant construction is expected to be completed in early next year.

Earlier, the company has spent Rp 1.3 trillion to build BOPP (biaxially-oriented polypropylene film and metalizing in Yunnan, China and Purwakarta, West Java with total capacity of 80,000 tons. Once the new plant is operating, the total capacity of the group will rise to 100,000 tons per annum.

Imelda Arismunandar, OSK Nusadana's finance director, said the company expects to get the IPO approval from regulator on June 30 and to list Indopoly's shares at stock exchange on July 9.

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