Indonesian manufacturer going public

A fourth tobacco manufacturer is to seek listing on the Indonesian Stock Exchange, according to a story in The Jakarta Post.

PT Wismilak Inti Makmur, a manufacturer of clove cigarettes and premium cigars, says it will hold an initial public offering (IPO) later this year.

Wismilak would be the fourth cigarette firm listed on the Indonesia Stock Exchange, after Gudang Garam, Sampoerna and Bentoel.

Wismilak’s corporate secretary, Surjanto Yasaputera, said the company had appointed PT OSK Nusadana Securities and PT Mandiri Sekuritas as underwriters for the IPO, in which Wismilak would sell a maximum of 30 per cent of its shares.

Surjanto did not say how much the firm expected to generate from the IPO nor an intended range for share prices.

Nevertheless, Trust Securities analyst, Reza Priyambada, said he doubted Wismilak’s IPO would generate the funds expected considering the bleak prospects for the tobacco industry.