Indonesia-based shrimp producer and exporter Panca Mitra Multiperdana plans to conduct its initial public offering (IPO) on the Indonesia Stock Exchange in the second or (early) third quarter of 2018. Martinus Soesilo, President Director of Panca Mitra Multiperdana, said the company will offer a maximum stake of 30 percent to the public. Soesilo added that there is one strategic investor that is eager to invest in the company.
According to Soesilo there are three factors that should make investors interested to invest in shares of Panca Mitra Multiperdana: (1) the good prospects of the shrimp supply in Indonesia, (2) the great potential of the US market (which is already the biggest buyer of frozen Indonesian shrimp products), and (3) the low minimum wage in East Java where the company has its factory (the local minimum wage is as low as IDR 1.6 million - approx. USD $117 - per month).
Meanwhile, Panca Mitra Multiperdana's chief commissioner Soesilo Soebardjo said he is optimistic that the IPO will have a positive impact on the company's performance and its future growth. Around 80 percent of the IPO proceeds will be allocated for the company's working capital budget, while the remaining 20 percent will be used for the capital expenditure budget. Soebardjo said this composition is justified as the frozen shrimp industry is both capital intensive and labor intensive.
Panca Mitra Multiperdana is among the three biggest frozen shrimp product exporters of Indonesia. Interestingly enough, all of the company's products are exported; the majority (70 percent) to the United States, followed by Japan (20 percent), and the remainder to Europe and Asia. Its customers include Walmart, Kroger, Ahold, and Gordon Food Service. In 2018 Panca Mitra Multiperdana aims to double its export volume from 10,000 tons of frozen shrimp in 2017 to 20,000 tons in 2018.
RHB Sekuritas and Danareksa Sekuritas have been appointed as underwriters for Panca Mitra Multiperdana's IPO.
Although there are many IPOs in the pipeline, only two companies have been added to the Indonesia Stock Exchange so far in 2018: telecommunication construction services company LCK Global Kedaton and coal miner Borneo Olah Sarana Sukses.
Last Update: 30 Nov 2018
IPOs on the Indonesia Stock Exchange up to 20 March 2018
|Company||P: 30 Nov 2018||P: 29 Nov 2018||Gain/Loss||P/E ttm||Yield %||Gain/Loss YTD|
|LCK Global KedatonLCKM||300||312||-3.85%||N/A||0.00%||-3.85%|
|Borneo Olah Sarana SuksesBOSS||2,400||2,270||5.73%||N/A||0.00%||300.00%|
Green colour indicates upward movement
Red colour indicates downward movement
P = price; E = earnings; D = dividend; Yield = D/P
"N/A" indicates P/E < 0 (negative earnings)
"-" indicates E,D,P or YTD is not available