JAKARTA. PT Sumber Tani Agung Resources Tbk (STAA) will commence its initial public offering (IPO) of 877.07 million shares in Indonesia Stock Exchange (IDX) by the end of this month.
Based on the recently released IPO prospectus, each share is worth IDR 100 and will be offered for IDR 470 to IDR 605 per share. Therefore, STAA may potentially collect fresh funds of up to IDR 530 billion during this corporate action.
In the future, the raised funds from the IPO will be allocated to the capital expenditure for the construction of the downstream industry of STAA’s subsidiary, PT Sumber Tani Agung Oils & Fats (STAOF) in Riau. The said project will be located on a land of 42.6 hectares in Dumai, Riau.
Specifically, 54% of the IPO proceeds will be spent on building a refinery plant with a capacity of 2 thousand metric tons (MT) of crude palm oil (CPO) per day. Then, another 23% will be used to build a docking facility, while another 23% will be for establishing a storage tank of 35 thousand MT.
STAA has appointed PT CIMB Niaga Sekuritas and DBS Vickers Sekuritas Indonesia as its underwriters. The IPO is scheduled for February 25, 2022, while the IDX listing follows on March 10, 2022. (KR/ZH)