JAKARTA (TheInsiderStories) – A local firm engaged in palm oil businesses, PT FAP Agri Tbk, plans to list its shares (IPO) on the Indonesia Stock Exchange (IDX), said the management today (21/12). The company eyes fresh funds Rp1 trillion (US$70.92 million) from the IPO.
The producer plans to release 544.41 million shares with an indicative price of Rp1,840 a share. The cooking-oil manufacturer has appointed PT BCA Sekuritas as the lead underwriter for the IPO. FAP Agri has pocketed the effective date of Dec. 17 and targeting to hold public offering on Dec. 21 – 23.
The allotment date on Dec. 9 and targeting to be listing at the local bourse on Jan. 4, 2021. FAP Agri is a private company that has more than 110,000 hectares of land located in East Kalimantan, North Kalimantan and Riau.
The group managed 11 companies, five mills with a total capacity more than 200 tones per hour, and one kernel processing plant. The producer, which was founded in 1994, also manages more than 8,000 hectares of conservation area.
Currently, the IDX has pocketed 20 companies in the pipeline waiting to hold public offering. In detail, three companies came from the trade, services and investment sectors. Then, two companies from the property, real estate, and building construction sectors. While, two companies from the consumer goods industry sector, two companies from the agricultural sector, and one company each from various industrial and financial sectors.
“The latest progress, 11 of which are predicted to conduct an IPO in December 2020,” said the director, I Gede Nyoman Yetna, on Dec. 2.
Until Nov. 19, he noted, there are 148 public offerings at the local bourse, consisting of 46 stock issuances, 94 bonds and Islamic bonds issuances, seven exchange traded funds, and one asset backed securities has been listed. So far, 46 new issuers have been listed on the IDX. In addition, he continued, there are 10 issuers that will issue bonds and SUKUK issuances.
This year, chairman of FSA, Wimboh Santoso, said the agency targeting total emissions in the capital market to reach Rp200 trillion and 70 issuer become a listed company in 2020. Last year, public offering at the local bourse recorded Rp166.8 trillion and 60 firms has been listed at the IDX.
But, recently, FSA sliced the fundraising targets to Rp100 trillion, due to the impact of the COVID-19 pandemic. Chief executive at FSA, Hoesen, adding, for next year, he confident the fundraising amount rebound to around Rp160 trillion.
To boost the fundraising in the capital market, FSA plans to implement the electronic book-building system for the IPO starting next year. Fuady said, as planned, the minimum amount of the allotment or pooling would not change with the original plan around 2.5 – 15 percent of the target size of the IPO shares.
Later, the implementation of the the policy will have a transitional period of six months starting from the promulgation of the regulation. While, Yetna stated that the bourse together with the Indonesian Clearing and Guarantee Corporation and the Indonesian Central Securities Depository will conduct an initial test the new scheme in this year.
The aim is to reach a wider range of investors and the spread of retail investors in carrying out the IPO. Santoso also mentioneds, to support the government efforts to reduce the impact of a pandemic, the agency and Self-Regulatory Organization have implemented a series of policies with make it easy for companies to get funding in the capital market and create conditions a conducive market.
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