Tuesday, 30 July 2013

DNSG SWAY TO STRENGTHEN SHARES AT BEI HALL



PT. Dharma Satya Nusantara [DSN] was a company belonging to ex director PT Astra International Tbk [ASII] Theodore Permadi Rachmat who had booked shares with code [DSNG] on Friday [14/6] at the Security Exchange [BEI] hall where they swayed their way to success.
               
During opening session of shares offering DSNG had positive response from investors; evidently during transactions index of IHSG at the first minute of DSNG transaction soared to 94 points to 4,701.
               
Even 3 minutes after opening sessiom, IHSG already strengthened above 120 points. During IPO the company was able to reap fund of Rp508.7 billion as Rp1,850 per unit was offered. Total market capitalization of shares of Dharma Satya Nusantara was posted at Rp32.92 trillion.
               
Dharma Satya was the 11th emitent who booked shares sinbc early this year. At BEI Security Exchange the Company’s shares was placed in the upper list. Acting as underwriter Was PT Ciptadana Securities and PT BCA sekuritas.
               
The company which specialized in palm  plantation, CPO production and logging business were glanced by many investors as they were associated with PT Rachmat who was President Of Astra International Tbk [ASII] and left his office only in 2002.
               
Teddy Rachmat set up his own company by the name of Group Tirta Putra. Thanks to this company, the name Teddy Rachmat was listed as one of the richest man in Indonesia by Forbes magazine in 2012. For estimated Teddy’s wealth at around USD 1.1 billion and he was among the top 16 richest men in Indonesia.
               
As recorded total market capitalization of DSNG after initial listing would come to Rp2.53 trillion. This emitent of the agribusiness sector made Initial Public Offering by releasing 275 million shares to the public at 21.32% of Initial price of Rp1,850 per share.
               
“This recorded shares was our success to stimulated better performance” company’s director Djojo Boentoro told the press after listing at the BEI building.
               
Djojo Boentoro disclosed that more than 50% the fund obtained from IPO would be used for new investment and building of new Factory in Muara Wahau. Meanwhile around 30% was for payment of part of bank’s credit around 10% of fund for relocation of wood processing center, and the rest for company’s working capital.
               
The company allocated fund for capital expenditure for the next 3 years at USD 270 million. As planned the sizable capital expenditure would be spent on two company’s factories, and new investment process each year would absorb around USD 90 million per year.
               
Offer Price Changes
               
Initially the company offered shares at around Rp1,780  - Rp2,150 per shares, the number of shares to be released was 500 million shares or equal to 21.32 percent of paid up capital after IPO at nominal value of Rp100 per shares.            
               
However according to the official statement the company only released 275 million shares or equal to 12.97 percent. All in all the total company’s IPO value came Rp508.75 billion. The fund obtained from IPO would be used for company’s activities among others: 50 percent for new investments and building of a new factory at Muara Wahau.
               
Meanwhile 30 percent would be used for paying part of bank’s credit. Around 10% would be used for relocation of wood processing factories and the rest for company’s capital expenditure. Djojo said that enterprise to increase investment in subsidiary companies had obtained new location permit to be exercised in 2014 in East Kalimantan, Central Kalimantan and West Kalimantan.
               
The objective of new investment and building of new factories to increase CPO production and to maintain performance of companies owned by companies. Admittedly resource in Kalimantan was quite far away which needed high transportation cost.
               
Today the company was in possession of land reserves totaling 181.104 hectares with total planted area converging 61.052 hectares. Judging from the recorded production output, DSNG was one of the leading companies in TBS and OER production. The company’s TBS product was posted at 22.9 tons per hectare, while OER was stable at 24 percent for the past years, exceeding that of similar companies in Indonesia and Malaysia.
               
By December 31, 2012, the company possessed total asset of Rp5.14 trillion with liabilities amounting to Rp3.73 trillion. Income was posted at Rp3.41 trillion with net profit of Rp245 billion. The composition of shareholders after IPO was: PT Triputra Investindo Arya 27.04 percent, PT Mitra Aneka Guna 10.28 percent and PT Nur Cakrawala 7.51 percent. The rest was owned by individuals and some other companies and public 12.97 percent. (SS) 



Business News - July 19,2013

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