Agroindustry and pharmaceutical BUMN PT Rajawali Nusantara Indonesia (Persero) or RNI plans to bring its subsidiary, PT PG Rajawali I, to conduct an initial public offering in semester II / 2019 with a funding target of Rp500 billion.
RNI President Director Didik Praseto said, currently the company is reviewing the IPO plan for PT PG Rajawali I. The target of the funds raised from the corporate action is around Rp500 billion.
“Currently [the IPO plan] is being processed by management. We will also discuss with the Ministry of BUMN, because there must be permission [from the Ministry of BUMN], “he said at the IDX Building on Wednesday (12/26).
PG Rajawali I is a sugar processing company based in Surabaya, East Java. The area of managed sugar cane plantations reaches 30,000 hectares (ha). Currently, PG Rajawali I has two sugar cane processing factories to become sugar in Madiun and Malang with a capacity of 18,000 tons cane per day (tcd).
Didik conveyed, RNI encouraged the Rajawali I PG to not only process sugar cane into sugar, but other refining products such as bioethanol, particle bord, and electricity from pulp. Therefore, the need for expulsion expansion funds can be obtained through an IPO.
“We are still discussing what the sugar cane will turn out like. So, PG Rajawali I in the future is not only a sugar company, but also a sugar cane processing company, “he added.
Rajawali I PG now has assets of Rp1.3 trillion. With the calculation of the target of Rp500 billion in IPO funds, the company is expected to release 38.46% of the issued and paid-up capital.
He added, Rajawali I PGO IPO is expected to be conducted in semester II / 2019. One of the company’s main considerations is the existence of the Presidential Election (Pilpres) agenda in April 2019, so that the initial release of shares will be carried out afterwards.
Meanwhile, RNI in 2019 targets 320,000 tons of sugar production from 2018 of 273,000 tons. The acquisition of sugar production in 2018 declined from the previous guide of 300,000 tons.