JAKARTA. PT Widodo Makmur Perkasa Tbk (WMP), the holding company of PT Widodo Makmur Unggas Tbk (WMUU), would debut through an initial public offering (IPO) in Indonesia Stock Exchange to support its business expansion plan.
The number of shares to be released by WMP in this IPO amounts to 8.33 billion units at most, equal to 25% of its listed shares. Each new share would be offered for IDR 160 to IDR 220. Thus, setting up the debut with this price, WMP could potentially gain fresh funds maximum of IDR 1.8 trillion in total.
According to Tumiyana, President Director of WMP, this IPO would accelerate WMP’s advancement as the key player in the consumer goods & agricultural commodities industry in Indonesia. “The proceeds of this IPO would boost capital expenditure (CapEx) that we’ve set in the expansion plan of WMP and all its business lines in the upcoming years,” Tumiyana further added earlier today (28/10).
Boumediene Sihombing, Director of PT BRI Danareksa Sekuritas, further specified through a press conference today (28/10) that 11.43% of the IPO proceeds would be spent on developing an export yard, an animal logistic facility, and an abattoir in Australia. Then, another 19.05% would be allocated to integrated farming and corn plantation facilities constructions, while another 19.05% would be channelled as additional investments to subsidiaries. Furthermore, 17.09% would be used to pay bank debts, while the remaining 32.57% would be used to fund working capital and purchase raw materials.
The bookbuilding of WMP would take place from October 27 to November 9, 2021. Meanwhile, the public offering would start from November 22 to 24, 2021, and the shares would be recorded in the listing process in IDX on November 26, 2021.
For the record, WMP is a holding company that manages five business lines. They include an integrated cow farm, meat-based food processing, an integrated chicken farm, agriculture commodities, and constructions and renewable energy. By the end of H1 2021, WMP scored IDR 2.71 trillion in sales and IDR 10.26 billion in net profit. (KR/ZH)