GarudaFood has submitted IPO‘s documents to the Indonesia Stock Exchange (IDX) and currently looking for the right time to conduct mini exposure next week.
“Yes, we have done the first registration,” said Chairman of GarudaFood Group Sudhamek Agung on Tuesday (10/7), as quoted by Kontan.
GarudaFood plans to release 10% of the issued and paid-up shares. Agung said Indopremier Sekuritas would act as the underwriter of the offering.
The company’s IPO plan has been growing since last year. The company was rumored to be able to raise funds of US$200 million from IPO.
On June 12, 2018, Bloomberg quoted a number of sources reporting that the Singapore investment firm CVC Capital Partners has invested in GarudaFood. CVC invested around US$150 million in GarudaFood ahead of the planned initial public offering.
GarudaFood is a food and beverage company was formally established on August 31st, 1990 pursuant to Ministry of Law Decree, subordinated to Tudung Group. In addition to GarudaFood, Tudung Group also engages in palm oil plantation and peanuts.
GarudaFood Group had originated from PT Tudung Putra Jaya (TPJ), it was established in Pati, Central Java. Seven years after established, the company started to establish PT GarudaFood Jaya (GFJ) and produce Gery brand biscuits. Then a year later GarudaFood acquired PT Triteguh Manunggal Sejati (TRMS) which produces jelly brand Okky and Keffy.
According to the IDX data, there are 21 companies already conducted the IPO this year. In addition, there are 20 companies that plan to conduct IPO in the second half of this year.
However, five companies had postponed their initial public offering plans due to deteriorating market condition including PT Wika Realty, PT Wahana Vinnyl Nusantara, dan PT Artajasa Pembayaran Elektronis.
The weakening capital market is not entirely caused by the internal factors, but mostly influenced by the external factor especially the US policies. The decision to delay IPO plans this year may extend to 2019, a year that will be filled with the general and presidential election, adding more risks to the capital market. Usually, the investors tend to wait and see during the political year.
The political year makes IDX lower the target of IPO next year between 25 to 30 new companies to be listed on the stock market in 2019, lower than this year’s IPO target of 35 new companies.