JAKARTA (TheInsiderStories) – The livestock producer, PT Widodo Makmur Unggas, has cut the number of initial public offerings (IPO) offering from 5.92 billion shares to 1.94 billion shares, or equivalent to 15 percent of its total shares, said the management on Monday (01/25). No further statement by the company for the reduction.
As reported, the issuer set the IPO price at Rp180 a share and has potential to raises fresh funds Rp349.41 billion (US$24.96 million). Earlier, the company owned by former CEO of PT Wijaya Karya Tbk (IDX: WIKA), Tumiyana, offer the new shares between Rp142 to Rp200. The IPO helped by PT CIMB Niaga Sekuritas, PT BRI Danareksa Sekuritas, and PT Samuel Sekuritas Indonesia.
Widodo Makmur has pocketed effective date from the Financial Services Authority on Jan. 22 and carried out a public offering starting Jan. 25 to 27. The allotment date set on Jan. 29 and the listing date on the Indonesia Stock Exchange on Feb. 2.
President director of the company, Ali Mas’adi, said will use the IPO proceeds for expansion by adding and expanding the production facilities, such as farm breeding facility in Yogyakarta, the farm and broiler facility in Central Java, hatchery facilities and slaughterhouse facility in West Java, also feed mill facility in East Java.
The remaining to purchase of raw materials at the feed mill, the commercial broiler chickens for slaughterhouse, and working capital. Last year, Widodo Makmur has build new chicken feed plant in Ngawi, East Java.
The construction of the factory covering an area of 12.7 hectares is a follow-up to the previous cooperation note with Japan’ Fuji Electric Group. Mas’adi explained the project had investment costs Rp650 billion and is scheduled to operate in 2021.
The company managed by Widodo Makmur Perkasa Group, engaged in vertically integrated chicken farming. The manufacturer divisions include feed, livestock, hatchery and slaughterhouse. While, the parent engaged in integrated chicken farming and also has planning go IPO in 2021 with targets around Rp2 trillion.
The Jakarta-based firm has eight animal husbandry locations spread across the island of Java. The chairman, Tumiyana stated, that the development of the factory was to meet the company’ poultry feed needs which reached 50,000 tones per month.
Widodo Makmur 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.
Then, the producer 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, their business line through the unit 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 began 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.
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