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KMDS plans to divert the use of the remaining IPO funds

30 November 2020 14:56

JAKARTA - PT Kurniamitra Duta Sentosa Tbk (KMDS) plans to transfer the remaining IPO proceeds of IDR 33.3 billion for equity participation in PT Formosa Ingredients Factory (FIF).

In the information disclosure quoted on Monday (30/11), Hengky Wijaya, President Director of KMDS, said that they would ask for approval of the plan at Extraordinary General Meeting of Shareholders (EGMS) on January 18, 2021. "Participation transaction will be held on January 25, 2021 - tentative, "he said.

FIF and KMDS have an affiliated relationship in which Hengky Wijaya is the overseer. KMDS conducted an IPO on September 7, 2020, with the funds acquisition of IDR 48 billion. Based on the information in the short KMDS prospectus, the proceeds from IPO would be used to purchase commodity in food and beverage sector.

According to him, FIF had high growth potential in food and beverage industry. There are plans to expand factory production capacity and product variations in the future. "With a 30% stake in Formosa, there will be growth in company performance," he said. (LK/VA)

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