Indonesia’s Citra Borneo aims to raise up to $360 mln in palm oil IPO

June 2, 2011 at 4:05 am (Uncategorized)

(Reuters) – Indonesian palm oil
plantation firm Citra Borneo Indah is
aiming to raise between $200 million to
$360 million in an initial public offering
during the second half of this year,
three sources familiar with the deal
said on Wednesday.
The company, owned by controversial tycoon
Abdul Rasyid and his family, has about 60,000
hectares (150,000 acres) of palm oil plantations.
The firm is floating a stake of between 20 and 30
percent, valuing the whole company at between $1
billion and $1.2 billion, said the sources, who
declined to be identified because the deal was not
public. They said the details have not been
finalised.
Citra Borneo Indah was not available to comment.
The firm, established in 1999, employs about 5,000
workers, has three palm oil mills and is based in
Central Kalimantan province on Borneo island.
If successful, the IPO would become the second
largest for a palm oil firm in Indonesia this year.
Salim Ivomas Pratama, an agribusiness unit of
Indofood Agri , raised $408 million in an IPO last
month.
Rasyid, a former Indonesian parliamentarian, has
been accused in the past by green groups and the
Ministry of Forestry of being a leading figure
behind illegal logging in Indonesia, particularly in
the Tanjung Puting national park in Central
Kalimantan. Rasyid has denied wrongdoing and
has never been charged. (Reporting by Janeman
Latul, Fathiya Dahrul and David Fogarty; Editing by
Neil Chatterjee)

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