Sampoerna Agro to Hold IPO of 419.500 MN Shares in June

PT Sampoerna Agro which operates in oilpalm seed breeding, plantation and processing, has planned to hold an initial public offering (IPO) of 419.5 million shares at nominal price of IDR200 per unit.Sampoerna Agro's management said in the IPO prospectus that the offering period is scheduled for June 12-14 while listing at the JSX on June 20, 2007.But the offering price will be set up later after the effective statement from the Capital market Supervisory Board (Bapepam) which is expected to be received on June 7, 2007, it said. It added that PT Danareksa Sekuritas has appointed as the underwriter. Of the total IPO proceeds, 60% will be used for repaying loan facility to Credit Suisse. The company's principal debt to Credit Suisse is US$100 million at interest rate of LIBOR+2.5% per year while the last debt installment will be January 26, 2012. Besides, 35% of the IPO proceeds will be used for financing the program of oilpalm plantation expansion and 5% will be used as working capital.Sampoerna Agro recorded sales of IDR977.3 billion in 2006, rising by 56.2% from IDR625.7 billion in 2005, supported chiefly by the higher in sales volume of CPO and palm kernels.CPO sales increased 59.3% from IDR524.4 billion in 2005 to IDR835.6 billion in 2006 supported by the sales volume that rose from 155,681 tones to 237,918 tones. At the same time, the gross profit climbed up 48.5% at IDR248.7 billion from IDR167.5 billion, while the operating profit rose 59.1% from IDR120.7 billion to IDR192.1 billion, and the net profit stepped up 83.8% at IDR112.7 billion from IDR61.3 billion.