Bumitama Gunajaya Agro IPO

Just when I'm getting interested to find out more about this IPO of Bumitama Gunajaya Agro , they just have to announce that it will be postponed due to market conditions. Darn.

Indonesia's Bumitama Gunajaya Agro has postponed plans to raise about US$150 million via an initial public offering (IPO) here due to the current uncertainty in financial markets, according to a notice seen by Reuters yesterday.

'The IPO has been postponed due to market conditions,' the notice said, adding that investor meetings scheduled to take place this week have been cancelled. HSBC and DBS began pre-marketing the Bumitama IPO last week.

From Business Times, "Bumitama Gunajaya Agro postpones IPO".

Indonesia's Bumitama Gunajaya Agro (BGA) is targeting a Singapore listing in the third quarter to raise around $150 million, in a bet that investor appetite for resources will hold up despite the overall weak market, sources said on Friday.

"HSBC and DBS are currently pre-marketing the approximately $150 million IPO for BGA palm oil plantation on the Singapore Exchange. Management roadshows are expected to commence in early July," a source familiar with the deal told Reuters. The source did not want to be named because the information has not been made public.

Two other sources said DBS will speak to some of its traders and potential investors later on Friday in Singapore, while HSBC has planned meetings in Hong Kong next week and London the week after.

HSBC and DBS declined to comment.

It was not immediately clear if BGA will list all its operations in the IPO. BGA owns palm oil plantations and processes the fresh palm fruit into crude palm oil and palm kernel for sale in Indonesia.

According to BGA group's website (www.bumitama.com), the group has operations in Kalimantan and Riau with a planted area of about 95,800 hectares.

BGA hopes to expand its planted area to 200,000 hectares by 2015 and has a partnership with Malaysia's IOI Corp.

From Reuters, "Indonesia's Bumitama to raise about $150 mln in S'pore IPO". (17/06/11)

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