PTPN III plans to raise Rp3 tln through IPO

PTPN III plans to raise Rp3 tln through IPO

PTPN III President Director Amri Siregar (ANTARA/Yudhi Mahatma)

Sawang, Noth Aceh (ANTARA News) - State-owned plantation company PT Perkebunan Nusantara (PTPN) III plans to raise Rp3 trillion through an initial public offering of 25-30 percent of its shares this year.

"We hope the IPO can materialize this year," PTPN III President Director Amri Siregar said on Saturday.

He said the company submitted a plan to conduct IPO to the committee of privatization team two years ago. But it put the plan on hold in 2009 because of unfavorable capital market condition.

"This year we will submit another proposal to the committee of privatization team to conduct IPO," he said.

He said the planned IPO would enable the company to expand its business and allow its employees to hold shares.

"Our equities currently reach Rp7.3 trillion so that we can raise an estimated Rp3 trillion in funds (through IPO)," he said.

He said Rp1.8 trillion of proceeds from the issuance of shares through the planned IPO would be used to finance the company`s business expansion, including construction of oil palm processing plant.

"We, along with PTPN I also develops 9,300 hectare oil palm plantations in the three districts of East Aceh, North Aceh and Aceh Tamiang," he said.

State Enterprises Minister Mustafa Abubakar said recently no state-owned plantation companies would conduct an IPO this year.

"State-owned plantation companies can make an IPO of their shares after the government forms a plantation holding company," he said.

PTPN III posted a net profit of Rp1.002 trillion last year, jumping from Rp707.08 billion the year before.
(T.R017/S012/H-NG/S012/P003)

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