Perkebunan Nusantara IV, a subsidiary of state-owned plantation company Perkebunan Nusantara III, known as PTPN III, has set a new schedule for its initial public offering in the first half of next year to fund a planned business expansion, PTPN III's president director said. (Antara Photo/Wahdi Septiawan)

Plantation Firm PTPN IV Tentatively Schedules IPO for First Half of 2018

BY :SARAH YUNIARNI

NOVEMBER 15, 2017

Jakarta. Perkebunan Nusantara IV, a subsidiary of state-owned plantation company Perkebunan Nusantara III, known as PTPN III, has set a new schedule for its initial public offering in the first half of next year to fund a planned business expansion, PTPN III's president director said.

The company announced last year that it will seek to raise around Rp 1.8 trillion ($133 million) from its IPO, but later delayed the scheduled date.

"The plan is still on track. If the country's macroeconomy is quite stable next year, we plan to raise our IPO targets above the previously reported figure," Dasuki Amsir, a president director at PTPN III, a holding company of 13 plantation subsidiaries, said on Tuesday (14/11).

However, he said the company is still taking a wait-and-see approach on market conditions, and might delay the IPO to the second half of next year or even to 2019 if troubling signs appear.

Dasuki said the company will hold a general shareholders meeting to seek the shareholders' approval for the offering. The company has appointed BNI Securities, a brokerage firm unit of state-controlled lender Bank Negara Indonesia (BNI), as its adviser for the IPO.

"We have yet to set how much stake we are planning to sell, but we will definitely hold the majority share in the company," Dasuki said, adding that the company has yet to appoint underwriters for the sale.

Dasuki said the holding plantation company wants PTPN IV to go public because it has a positive balance sheet. In the first nine months this year, PTPN IV booked Rp 525 billion in net income, more than double the Rp 260.71 billion net income it made in the same period last year.

Dasuki said the company targets to book around Rp 700 billion in profit by the end of the year.

Revenue in the January-October period this year is also on par with last year's figures of around Rp 4.6 trillion. The company will look to book around Rp 5.8 trillion in revenue throughout 2017.

Dasuki said the company's performance was boosted by favorable commodity prices, as PTPN IV derives its revenue from crude palm oil (CPO) production, which contributes to 95 percent of the company's overall business.

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