Indonesia's Salim Ivomas aims to raise $300 mln in June IPO

Salim Group, one of Indonesia's wealthiest conglomerates, aims to raise up to $300 million by selling a 30 percent stake in cooking oil producer PT Salim Ivomas Pratama in a June public offering, sources with direct knowledge of the deal said on Tuesday.

The latest move to tap Indonesia's capital market comes as crude palm oil prices hit a near three-year high this month and after Salim Group's IPO for noodle maker PT Indofood CBP that raised $700 million in October.

"The group, along with its advisors, are currently working on details and the structure of the IPO," said one of four sources with direct knowledge of the deal, adding that the group has picked Credit Suisse and Deutsche Bank as the global coordinators for the IPO.

The sources declined to be identified as details have not been made public.

PT Mandiri Sekuritas and PT Kim Eng Securities will be the local underwriters. All four underwriters declined to comment.

"Ivomas IPO could see some demand as long the price and valuation is right," said Harry Su, head of research at PT Bahana Securities in Jakarta.

"The plantation sector, mainly palm oil, still remains attractive," he said, adding "we expect some downturn in CPO prices in the second-half, so actually, the sooner the better (for the IPO) although market sentiment is not that good in the first half."

The rise in global food prices to record highs this year is giving many Indonesian producers, including Salim Ivomas, the opportunity for greater margins and profits.Source: Reuters