* Aims to sell 3.163 billion new shares in June 9 IPO
* Sets IPO share price range at 1,060-1,700 rph/share
* Could be Indonesia's biggest IPO this year
Salim Ivomas Pratama, an agribusiness unit of Indofood Agri,
will raise as much as $631 million in its June initial public offering,
making it the biggest Indonesian listing so far this year.
Salim Ivomas has set the price range for bookbuilding at
1,060 rupiah to 1,700 rupiah per share, said Kim Eng Securities,
one of its underwriters, following a due diligence meeting with
investors on Tuesday.
The move by its parent Salim Group, one of Indonesia's
wealthiest conglomerates, follows Salim's IPO for noodle maker
PT Indofood CBP last October that raised $700 million.
But the Ivomas offering may have come at a bad time after
last week's slump in commodity prices, the biggest drop since
2008, as investors take a cautious view on demand after a steep
rally in commodity prices and worries over the global economy.
"The commodities sector, mainly palm oil, in Indonesia is
facing some pressing issues like taxes and as companies are
facing maturing yields," said Michael Tjoajadi, a fund manager
at Schroders Investment Management Indonesia that manages assets
of $4.3 billion.
"So (palm oil) demand will be steady if not declining in the
near term, which will also impact appetite for stocks."
However Salim Ivomas, which grows palm oil, rubber and sugar
and has refineries making cooking oil and margarine, is likely
to see strong local demand for these finished products as
incomes and the population rises in Southeast Asia's biggest
economy , analysts say.
The country's stock market has also surged to fresh
record highs this month as foreign investors return to the G20
country, after a sell-off in January and weak debut in February
for state flag carrier Garuda Indonesia.
Salim Ivomas will sell 3.163 billion 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.
Indonesia is the world's largest palm oil producer but
currently relies on sugar imports, though is aiming to achieve
self-sufficiency in the sweetener by 2014.
Ivomas 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.
The firm will conduct a roadshow and bookbuilding between
May 9 to 20 and the listing is expected on June 9, according to
a company statement. Source: Reuters
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