Jakarta-based premium rice producer Buyung Poetra Sembada plans to raise up to Rp 280 billion, or $21 million, from an initial public offering next month to help fund a planned business expansion, a company director said on Friday (26/05). (Antara Photo/Kornelis Kaha)
Premium Rice Producer Buyung Poetra Looks to Raise $21m in June IPO
BY :SARAH YUNIARNI
MAY 27, 2017
Jakarta. Jakarta-based premium rice producer Buyung Poetra Sembada plans to raise up to Rp 280 billion, or $21 million, from an initial public offering next month to help fund a planned business expansion, a company director said on Friday (26/05).
The rice producer will look to sell 700 million new shares, equivalent to nearly 30 percent of the company's enlarged capital, according to a company statement.
Buyung Poetra plans to price its shares at next month's IPO between Rp 300-400 each.
The company's book building period is scheduled for May 24-June 6, before the company offers its shares to investors on June 16-19. Buyung Poetra will list its shares on the Indonesia Stock Exchange (IDX) on June 23.
The company has appointed brokerage firms Bahana Securities, RHB Sekuritas Indonesia and Trimegah Sekuritas Indonesia as underwriters for the IPO.
Budiman Susilo, an independent director at Buyung Poetra, said the company will use proceeds from the IPO to enlarge its working capital, increase investments and pay back bank loans.
"We will invest Rp 100 million to open a factory in eastern Indonesia [...] maybe East Java or another island, by 2018," he said.
Budiman added that the new factory will have similar production capacities as the company's existing facility in Subang, West Java, which currently produces around 259,000 tons of premium rice each year.
The company also operates a production facility in Cipinang, East Jakarta.
Known for its signature rice brand Beras Topi Koki, Buyung Poetra also owns a warehouse and distribution center at the Meiko Abadi Industrial Estate in Sidoarjo, East Java.
The company introduced a new rice product, named Hoki, in the first quarter this year.
Buyung Poetra distributes its products to big-name convenience stores and supermarkets across the archipelago, including Indomaret, Giant, Hero, Hypermart, Yomart and Lotte Mart.