PT Widodo Makmur Perkasa (WMP) will conduct an initial public offering in November by releasing 30 percent of the company shares - Photo by the Issuer

JAKARTA (TheInsiderStories) – Local food producer, PT Widodo Makmur Perkasa (WMP) will conduct an initial public offering (IPO) in November by releasing 30 percent of the company shares, said the CEO on Thursday (04/15). The manufacturer is the parent company of PT Widodo Makmur Unggas Tbk (IDX: WMUU).

The company founded by Tumiyana eyes Rp5.5 trillion (US$376.71 million) from the listing program. According to him, the proceeds from the IPO will be used to support the investment plan of Rp10.9 trillion in the next four years. He said, the fresh funds will be allocated to increase the capacity of food crops and increase the protein production businesses.

“The biggest part is dominated by WMUU (Widodo Makmur Unggas) facilitation. We will plant 15,000 to 20,000 hectares of corn and integrated farming in South Sulawesi to support them,” he asserted in one seminar.

In addition, said Tumiyana, WMP has also prepared 6,000 hectares of land in Lampung for corn plantation. In the next two years, he continued, the company has a land capacity of 26,000 hectares to meet the needs of 55 percent of the unit’ raw material needs.

The Jakarta-based company has eight animal husbandry locations spread across the island of Java. Recently, the company has signed a memorandum of cooperation and work order with an affiliate of Fuji Electric Group from Japan to build a feed mill factory in Ngawi, East Java, worth of Rp650 billion.

The construction of this feed mill, according to Tumiyana, is also one of the strategic initiatives prepared by the company ahead of WMP’ plan to enter the stock exchange through an IPO. The construction of the factory is planned to take 1.5 years.

This plant will stand on an area of ​​12 hectares with a capacity of 140 tons per hour. He targeted the first phase of construction to be completed in 2021. He added, the construction of the factory was to meet the company’ poultry feed needs which reached 50,000 tons per month.

WMP has been established since 1995 ago. In 1999, the development of cattle fattening was so rapid that the business center was moved to Jakarta and established the company with an initial import of 1,500 cattle from Australia. In 2002, the company pioneered the property and investment business and in 2003, was registered as Widodo Makmur Perkasa.

Furthermore, the company expanded in 2006 by establishing a livestock feed business line under the banner of PT Pasir Tengah and starting operations by building an integrated cattle farm in Cianjur, West Java. In 2015, the property business line was released under the banner of PT Langgeng Makmur Perkasa by launching the Apartement Wismaya Residence product in Bekasi, West Java.

In 2017, the poultry business line through WMU began to move in the poultry business starting from the business of breeding, hatchery, chicken feed production and farming business as well as chicken slaughterhouses in Jambakan, Klaten.

In the same year, the energy business line will begin with the activities of PT Widodo Makmur Prima Energy, which is engaged in oil and gas exploration in collaboration with third parties.Then, the company established PT Widodo Capital Indonesia which was prepared to run a financial and investment management business.

US$1: Rp14,600

Written by Editorial Staff, Email: theinsiderstories@gmail.com