The Jakarta Post
The Jakarta Post
Cheese manufacturer PT Mulia Boga Raya Tbk (KEJU) and palm oil producer PT Palma Serasih (PSGO) received a strong response from investors when the two companies listed their shares on the stock market on Monday.
Shortly after the bell signaled the start of the first trading session, the price of Mulio Boga shares hit Rp 1,125 (8 US cent), a 50 percent increase from the offering price of Rp 750 in the company’s initial public offering (IPO). The price rose further to Rp 1,305 in the morning trading session on Tuesday.
Meanwhile, Palma Serasih shares traded at Rp 178, a 70 percent increase from its IPO price of Rp 105 per share. The share price also continued to increase, reaching Rp 206 in early trading on Tuesday.
Mulia Boga Raya raised about Rp 75 billion from the sale of new shares during the IPO to finance expansion projects.
"With the proceeds from the IPO, we will expand our distribution and marketing points for our cheese products across the country and improve logistics," said Mulia Boga Raya president director Sandjaya Rusli said after the listing.
Meanwhile, palm oil producer Palma Serasih raised Rp 299.25 billion worth of funds, also to be used for expansion.
According to a press release from Palma Serasih, 43.66 percent of the IPO proceeds will be used to expand oil palm plantations, 29.76 percent for working capital, 14.15 percent for the construction of a new palm oil factory and the remaining 12.44 percent for nonplantation operations.
"With the IPO, [we have] a higher chance to realize all of our expansion plans [and] finish the construction of our second factory," Palma Serasih president director Budiono Tanbun said after the listing.
As of May, Palma Serasih recorded net sales of Rp 295.84 billion, which is a 7.1 percent rise year-on-year compared to last year's figure of Rp 276.21 billion. On Monday, Mulia Boga Raya and Palma Serasih became the 47th and 48th companies to be listed with IDX this year, and the 610th and 611th to be listed at the exchange to date. (bry)