A poultry and livestock producer, PT Widodo Makmur Unggas Tbk (IDX: WMUU) prepared capital expenditure around Rp1.5 trillion (US$107.14 million) - Photo by the Company

JAKARTA (TheInsiderStories) – A poultry and livestock producer, PT Widodo Makmur Unggas Tbk (IDX: WMUU) prepared capital expenditure around Rp1.5 trillion (US$107.14 million), said the management today. The investment funds come from the proceeds of the initial public offering and the issuance of future bonds at the end of the year.

The president director, Ali Mas’adi, after listing process at the Indonesia Stock Exchange on Tuesday (02/02), the bond issuances is estimating around Rp1 trillion. He explained the funds will be uses to increase the production capacity of the new listed company to 6.4 million broilers per year. Then, to lift up the capacity of the Poultry Slaughterhouse around 25,500 chickens per hour.

Widodo Makmur became the 6th issuer this year on the main board of the stock exchange. The producer released around 15 percent of the total shares to public with initial price Rp180 a unit and raises Rp294.4 billion. Currently, the market capitalization value of the company around Rp2.87 trillion.

With the various business expansion, the issuer projected the sales to skyrocket by 436 percent and net profit of 259 percent compared to last year. After the IPO, the shareholders of the livestock producer are PT Widodo Makmur Perkasa 76.5 percent, Warsini 4.25 percent, Wahyu Andi Susilo 4.25 percent, and public 15 percent.

Widodo Makmur founded in 2017 by former CEO of PT Wijaya Karya Tbk (IDX: WIKA), Tumiyana, and has a vertically integrated poultry business that controls large-scale feed mills, breeding farms, hatcheries, commercial farms, layer farms, slaughterhouses and related partnership operations. He now served as the chairman of the company.

This company was founded with the forerunner of a cooperative in 1995 in Klaten, Central Java with a cattle fattening business. Then, the company grew and started importing cattle from Australia. The company managed by Widodo Makmur Perkasa Group, engaged in integrated chicken farming. The parent 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 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.

US$1: Rp14,000

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