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Indonesia’s Bumitama to Revive US$160-million Singapore IPO


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by Ernie B. Calucag

Indonesian palm oil firm Bumitama Gunajaya Agro is reviving its US$160.0-million (S$200.0 million) initial public offering in Singapore after shelving it in June last year, the Reuters reported on Wednesday.

Bumitama plans to raise about S$200.0 million through a listing in Singapore in the second quarter of the year, three sources with direct knowledge of the matter told Reuters.

The revival of Bumitama’s IPO could mark the start of several more Asian listings to come, as equity markets around the region enjoyed a strong start to the year with the MSCI Asia ex-Japan gaining 13 per cent so far.

Market volatility and waning risk appetite forced several large IPOs in Asia, including English Premier League club Manchester United’s high profile listing, to be pulled in 2011.

“The markets are better than where we were in the fourth quarter. US data is pretty strong and the ECB (European Central Bank) is pumping a lot of liquidity into the market,” said one of the sources.

HSBC and DBS remain the joint bookrunners for the IPO, the sources told Reuters.

The bankers are planning to begin marketing the listing in the later part of March, a source said.