Indonesia's PalmCo eyes IPO by yearend in one of Jakarta’s biggest this year

JAKARTA, June 12 (Bloomberg): Indonesia’s state-owned PT Perkebunan Nusantara III, also known as PTPN III, is finalizing the merger of four plantation subsidiaries into a newly setup PalmCo unit this month, then taking it public by the end of the year.

PalmCo, formed as the holding entity for PTPN’s oil palm plantation operations, is waiting for formal approval from creditors this month that would pave the way for the initial public offering process to kick off soon after, said President Director Mohammad Abdul Ghani, in an interview last week.

Mandiri Sekuritas, DBS, BNP Paribas, CIMB have been appointed as underwriters.

"Just like in a car race, we are already standing at the start line, just waiting for the green flag to step on the gas,” Ghani said.

The initial share sale, which could raise as much as 10 trillion rupiah ($673 million), would cement Indonesia’s position as one the busiest spots for IPOs in 2023, with proceeds since the start of January through May up by 67% year-on-year, according to data compiled by Bloomberg.

Gold and copper miner PT Amman Mineral Internasional is seeking as much as 12.9 trillion rupiah from a July IPO, which would make it the country’s biggest this year, surpassing PT Trimegah Bangun Persada with 10 trillion rupiah raised in April.

Ghani said last year the company expects to raise between 5 trillion and 10 trillion rupiah from offering a 20% stake. He declined to confirm the IPO size in the interview on Thursday.

"We will use the funds for investing in downstream industry projects, including renewable energy production,” Ghani said. The company will start construction of a biodiesel plant in Sei Mangke economic zone, in North Sumatra, this year, seeking to start production in January 2024. - Bloomberg