Salim Ivomas aims for $700 mln in June IPO-sources

Salim Group, one of Indonesia's wealthiest conglomerates, is aiming to raise 6 trillion rupiah ($702 million) by selling a 20 percent stake in cooking oil producer Salim Ivomas Pratama in an initial public offering in June, said three sources with direct knowledge of the deal on Tuesday.

This was higher than previous expectations of raising $300 million when sources in February told Reuters the plan was being discussed by management and its advisors, and would be the largest Indonesian IPO so far this year.

The latest move by Salim Group comes after its IPO for noodle maker PT Indofood CBP that raised $700 million in October last year.

The firm will sell 3.163 billion of new shares equalling a 20 percent stake of its enlarged capital and the funds will be used to pay off debt and to expand in palm oil and sugar plantations.

"Forty percent of the funds from the IPO will be used to pay down its debt," said one of the sources, who declined to be identified because the deal was not public.

The group has picked Kim Eng Securities as the lead underwriter and Deutsche Bank (DBKGn.DE) and Mandiri Sekuritas as secondary underwriters. Credit Suisse was not involved in the offering despite leading the IPO of Indofood CBP last year.

All three underwriters declined to comment.

The firm will conduct a roadshow and bookbuilding between May 9 to 20 and the listing is expected on June 9, the sources said. ($1 = 8547.5 Rupiah). Source: Reuters