Citra Borneo, Provident Aim For Big Gains In IPO Game
ID/Elizabeth Gloria Berahmana
Citra Borneo Indah and Provident Agro, two of the country’s crude palm oil producers, are hoping to raise about Rp 1.5 trillion ($158 million) from selling stakes in separate initial public offerings later this year.
Citra Borneo aims to raise at least Rp 1 trillion from selling stakes in an IPO in September. The company plans to sell a 20 percent stake, according to a source who declined to be identified because the matter was confidential.
Provident Agro hopes to raise Rp 500 billion from selling a 20 percent stake, also in September.
Citra Borneo has appointed Mandiri Sekuritas, Citigroup, Morgan Stanley and BNP Paribas to help underwrite the IPO, the source said.
The company is now finalizing all necessary documents for the IPO. It says it will hold a presentation before management of the Indonesia Stock Exchange in the near future.
Hoesen, a director for evaluation at the IDX, confirmed the company’s plan although he did not elaborate further.
“Borneo is a big company; no wonder it’s aiming for Rp 1 trillion,” Hoesen said.
Citra Borneo is a unit of Citra Borneo Indah Group. It is based in Pangakalan Bun in Central Kalimantan. The company has 90,094 hectares of land in Kalimantan, of which 49,000 hectares has been planted with trees for palm oil.
Kalimantan is rich in natural resources such as coal, oil, natural gas and gold.
Crude palm oil typically needs at least five years before it can be harvested.
Citra Borneo last year produced 177,000 tons of crude palm oil, and its production is expected to increase 47 percent to 260,000 tons this year.
Provident Agro is controlled by Provident Capital and Saratoga Capital. Saratoga Capital was founded by Edwin Soeryadjaya and Sandiaga Uno. Saratoga also controls 51 percent of Mandala Airlines.
Provident Capital is controlled by Winato Kartono and Hardi Wijaya Liong. They all are controlling shareholders in Tower Bersama Infrastructure.
Provident Agro has 140,000 hectares of land in Kalimantan, Sumatra and Sulawesi.