Popular Trading Debut for Sawit Sumbermas Sarana on Stock Exchange
Sawit Sumbermas Sarana (SSMS), a palm oil plantation company that conducted its initial public offering (IPO) on the Indonesia Stock Exchange on Thursday (12/12), aims for a 15 percent growth (yoy) in net profit in 2014 to IDR 207 billion (USD $17.3 million) as the price of crude palm oil (CPO) is expected to improve. The company's listing on the stock exchange (IDX) was a success, rising almost 12 percent on its debut, supported by foreign enthusiasm. Foreign institutional investors bought 81 percent of the stocks that were issued.
The company's shares rose from IDR 670 to IDR 720 on its first trading day, raising IDR 1 trillion (USD $83.3 million). Approximately a quarter of the funds generated through the IPO will be used for debt settlements. The company currently has a total debt of IDR 1.41 trillion. About two-thirds of the funds raised in the IPO will be used for business expansion (plantation area and processing facilities) and the remainder for working capital.
Sawit Sumbermas Sarana (listed company code SSMS) offered 1.5 billion shares to the public, equivalent to 15.7 percent of its enlarged capital.
Despite the palm oil sector having been hit by global financial turmoil, causing a sharply reduced CPO price, the company's shares during the IPO were oversubscribed due to high demand. Foreign institutional investors, particularly from Malaysia, were eager to buy Sawit Sumbermas Sarana's shares, thus indicating investors' optimism about the long-term prospects of the palm oil business.
The company owns eleven plantations with a total size of 78,000 hectares (33,000 of which is planted) and operates four CPO processing factories and one palm kernel crushing plant.
Sawit Sumbermas Sarana, a subsidiary of Citra Borneo Indah, was the 29th company that conducted its IPO on the Indonesia Stock Exchange in 2013:
Last Update: 29 Mar 2021
Initial Public Offerings on the Indonesia Stock Exchange in 2013
| Company | P: 29 Mar 2021 | P: 28 Mar 2021 | Gain/Loss | P/E ttm | Yield % | Gain/Loss YTD |
| Bank Maspion Indonesia Tbk.BMAS | 750 | 805 | -6.83% | N/A | 0.00% | 75.23% |
| Multipolar Technology Tbk.MLPT | 1,195 | 1,165 | 2.58% | N/A | 0.00% | 36.57% |
| Pelayaran Nasional Bina Buana RayaBBRM | 50 | 50 | 0.00% | N/A | 0.00% | 0.00% |
| Saraswati Griya LestariHOTL | 50 | 50 | 0.00% | N/A | 0.00% | 0.00% |
| Sarana Meditama Metropolitan Tbk.SAME | 432 | 458 | -5.68% | N/A | 0.00% | 15.51% |
| Multi Agro Gemilang PlantationMAGP | 50 | 50 | 0.00% | N/A | 0.00% | 0.00% |
| Electronic City IndonesiaECII | 1,050 | 1,100 | -4.55% | N/A | 0.00% | 10.53% |
| Trans Power Marine TPMA | 1,035 | 1,040 | -0.48% | N/A | 0.00% | 26.99% |
| Steel Pipe Industry of IndonesiaISSP | 194 | 195 | -0.51% | N/A | 0.00% | -27.07% |
| Dyandra Media InternationalDYAN | 103 | 100 | 3.00% | N/A | 0.00% | 74.58% |
| Austindo Nusantara JayaANJT | 700 | 690 | 1.45% | N/A | 0.00% | -1.41% |
| Bank Nationalnobu Tbk.NOBU | 775 | 795 | -2.52% | N/A | 0.00% | 1.97% |
| Mitra Pinasthika Mustika Tbk.MPMX | 585 | 595 | -1.68% | N/A | 0.00% | 15.84% |
| Apexindo Pratama DutaAPEX | 394 | 382 | 3.14% | N/A | 0.00% | -44.90% |
| Dharma Satya NusantaraDSNG | 615 | 635 | -3.15% | N/A | 0.00% | 2.50% |
| Sri Rejeki IsmanSRIL | 206 | 214 | -3.74% | N/A | 0.00% | -18.90% |
| Acset IndonusaACST | 328 | 328 | 0.00% | N/A | 0.00% | -24.42% |
| Saratoga Investama SedayaSRTG | 5,375 | 5,375 | 0.00% | N/A | 0.00% | 35.39% |
| Nusa Raya Cipta Tbk.NRCA | 338 | 338 | 0.00% | N/A | 0.00% | -8.65% |
| Semen BaturajaSMBR | 885 | 885 | 0.00% | N/A | 0.00% | -17.67% |
| Victoria Investama Tbk.VICO | 126 | 133 | -5.26% | N/A | 0.00% | 53.66% |
| Bank Mestika Dharma Tbk.BBMD | 1,380 | 1,380 | 0.00% | N/A | 0.00% | -4.17% |
| Siloam International HospitalsSILO | 4,890 | 4,800 | 1.87% | N/A | 0.00% | -9.44% |
| Arita Prima IndonesiaAPII | 178 | 178 | 0.00% | N/A | 0.00% | -15.24% |
| Grand Kartech Tbk.KRAH | 436 | 436 | 0.00% | N/A | 0.00% | 0.00% |
| Indomobil Multi Jasa Tbk.IMJS | 342 | 338 | 1.18% | N/A | 0.00% | -5.00% |
| Sawit Sumbermas SaranaSSMS | 985 | 1,000 | -1.50% | N/A | 0.00% | -7.08% |
| Combined Total | 23,447 | 23,515 | -0.29% | 5.15% |
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