Indonesia’s Bumitama Gunajaya Agro Group, which operates oil palm plantations and mills, may raise as much as S$221.7 million ($176 million) in a Singapore initial public offering, said one person with knowledge of the matter.
The company, a unit of Jakarta-based PT Harita Jayaraya, plans to sell 297.6 million shares in the offering, according to a prospectus posted on the Monetary Authority of Singapore’s website today. The shares will be offered at between 67.5 to 74.5 Singapore cents apiece, the person said, declining to be named as the information isn’t public.
BGA has agreed to sell 124.8 million shares to so-called cornerstone investors including Target Asset Management and Wilmar International Ltd. (WIL), according to the prospectus. It plans to use the IPO proceeds to expand its existing uncultivated land bank and oil palm plantations, as well as to repay loans.
The company reported profit of $86.8 million in 2011, compared to $98.2 million in 2010, according to the document.
BGA, as the company is called, manages 38 palm oil estates and five mills with a total capacity of 315 tons per hour as of June 2011, according to the company’s website. BGA, which employs as many as 17,200 people, plans to build two more mills this year, and has a target of 200,000 hectares of planted area by 2015, according to the website.
The company is currently unable to disclose the details of the offering, Katrin, a staff member in BGA’s corporate secretary division who goes by only one name, said today.
DBS Group Holdings Ltd. (DBS) and HSBC Holdings Plc (HSBA) are managing BGA’s IPO, according to the prospectus.
Harita is also planning an IPO of its nickel mining unit in Singapore, people with knowledge of the matter said in January.
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