Consciencefood IPO

What annoys me is that I have not even tried the instant noodles product of Consciencefood. As much as I'm tempted to dabble in this stock, I might give it a miss.

From SGX.com: Consciencefood Holding Limited is principally engaged in the business of manufacture and sale of instant noodles and snack noodles. Instant noodles are the Group’s flagship product and are marketed under Alhami, Santremie, Maitri and Alimi brand names. The Group’s snack noodles are marketed under Hola Hole and Mikka brand names.

The Group’s focus is the domestic market in Indonesia covering six provinces in Sumatra Island, namely North Sumatra, Aceh, Riau, Jambi, West Sumatra and South Sumatra, and Java Island. The Group’s major overseas markets are Malaysia, Papua New Guinea, South Africa, Hong Kong, Palestinian territories, Madagascar and Singapore.

Go to SGX.com for its prospectus & more info.

CONSCIENCEFOOD, an Indonesian maker of instant noodles, yesterday launched an initial public offer to raise $18.8 million. It is selling 104 million shares at 22 cents apiece, which prices the company at 5.6 times historic earnings.

Consciencefood earned 3.9 Singapore cents last financial year, or 85 billion rupiah, on sales of 490 billion rupiah.

The placement of 96 million new shares and almost 8 million vendor shares represents 26.3 per cent of the company's enlarged share capital. Two million shares are available for public subscription, while the remaining 102 million will be placed out.

The invitation opened yesterday and will close at noon next Tuesday. Listing and trading of the shares on the Singapore Exchange is expected to start at 9am next Thursday. Collins Stewart is the manager, underwriter and placement agent for the public offer.

The net proceeds of $18.8 million will be used for promotional activity, the purchase of new machinery and manufacturing facilities and for general working capital.

Consciencefood chairman and chief executive officer Djoesianto Law said the busier lifestyles of Indonesian consumers will raise demand for convenience food like instant noodles. Sales of instant noodles in Indonesia are expected to grow from 1.09 million tonnes in 2009 to 1.25 million tonnes in 2014, he said.

Mr Law said the company wants to expand into new products, new instant noodle flavours and new markets in China and India.

From Business Times, "Consciencefood launches IPO".

An Indonesian instant noodle manufacturer, Consciencefood Holding, launched its initial public offering (IPO) yesterday for a Mainboard listing on the Singapore Exchange.

The group is offering 104 million shares at 22 cents each. Only 2 million shares will be for the public and the remaining 102 million shares will be placed out. Listing and trading of the shares are expected to commence on Aug 5.

Funds raised will be used for product range expansion and market penetration in Indonesia and overseas, and diversification into new products with higher margins.

From Today, "Consciencefood lodges listing prospectus".

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