COUNTRY REPORT INDONESIAHDFC’s board has also approved a
preferential issue of 64.3m shares at
Rs1,726.05 each, or a 2% discount to
January 12 close, to raise Rs111bn. The
preferential offer represents 3.9% of the
enhanced capital.
Some 30.1m shares will be sold to
Waverly, an affiliate of GIC, 10m shares
to OMERS Administration, a Canadian
pension fund, 9.27m shares to Silverview
Investments, an affiliate of KKR, 9.14m
shares to Carmignac Group and 5.79m
shares to Premji Invest.
Proceeds from the preferential share
issue will be used to buy subsidiary HDFC
Bank’s shares for Rs85bn.
› INDIAN SOE DUO FILES TO LIST
Two state-owned companies, RITES and
MISHRA DHATU NIGAM , have filed draft IPO
prospectuses with the Securities and
Exchange Board of India.
The Indian government has set an
aggressive disinvestment target of Rs725bn
for the current financial year, of which
Rs465bn is expected to come from stake
sales in state-owned companies on local
stock exchanges.
Engineering consultant Rites plans to
raise about Rs5bn–Rs10bn from the IPO,
people with knowledge of the matters told
IFR earlier.
The IPO is likely to be launched by
March.
Elara Capital , IDBI Capital , IDFC and SBI
Capital are the bookrunners.
The Ministry of Railways owns 100% of
the company.
Meanwhile, Mishra Dhatu Nigam
(Midhani), a metals and alloys manufacturer
for India’s defence industries, plans to sell
up to 46.8m shares or 25% stake.
The company, owned by the Ministry of
Defence, posted a profit after tax of Rs273m
on revenues of Rs2.2bn for the six months
ended September 30 2017.
IDBI Capital and SBI Capital are the
bookrunners.
› GALAXY SURFACTANTS SETS IPO GOAL
Indian specialty chemicals manufacturer
GALAXY SURFACTANTS will open its IPO of
Rs9.37bn for subscription from January 29
to 31.
The IPO will involve 6.33m secondary
shares, representing 17.8% of the issued
company capital, which 307 stakeholders
are selling.
The price range is set at Rs1,470–Rs1,480.
Edelweiss , ICICI Securities and JM Financial
are bookrunners.
The specialty chemicals maker had
launched a Rs2bn IPO in 2011, but pulled it
because of weak investor response.
The company is a supplier to global
personal care products manufacturers, such
as L’Oreal and Colgate-Palmolive. For the
six months to September 30, Galaxy posted
a pre-tax profit of Rs1.057bn on revenue of
Rs11.97bn.› TWO FLOATS COVEREDThe Rs6bn IPO of AMBER ENTERPRISES was
subscribed 6.63 times at 12:30pm local time
last Friday. Subscription was set to close
later that day.
The Indian contract manufacturer’s
float, which comprises primary shares of
Rs4.75bn and secondary shares of Rs1.25bn,
is being sold at a price range of Rs855–
Rs859 per share.
Amber posted a net profit of Rs279m on
revenue of Rs16.5bn for the financial year
to March 31 2017.
The company manufactures air-
conditioners for consumer goods
companies like Daikin, Hitachi, LG,
Panasonic, Voltas and Godrej.
BNP Paribas , Edelweiss , IDFC and SBI Capital
are bookrunners.
INDIA NEWGEN SOFTWARE ’s Rs4.3bn IPO was
subscribed 8.25 times on its last day of
bookbuilding last Thursday. Demand from
institutional investors was strong with that
tranche being 15.62 times covered.
Primary shares for Rs9.5bn and 13.5m
secondary shares are being sold in the
Rs240–Rs245 range.
ICICI Securities , IDFC Bank and Jefferies are
the bookrunners.› SANGHI INDUSTRIES LAUNCHES QIPIndian cement producer SANGHI INDUSTRIES
has launched a qualified institutional
placement of Rs4bn.
The company has set a floor price of
Rs135.48.
SBI Capital , Motilal and HDFC are the joint
bookrunners.INDONESIA
DEBT CAPITAL MARKETS
› SSMS NETS OVER US$1.1BNSAWIT SUMBERMAS SARANA attracted orders of
over US$1.1bn for US$300m of 7.75% five-
year non-call three notes, two months after
pulling a similar offering in November due
to a lack of demand.
Asia was allocated 90% of the notes andthe remainder went to EMEA. In terms of
investor types, 89% were fund managers,
7%were private banks, 3% were banks and
1% were others.
The Indonesian palm oil producer, rated
B1/B+ (Moody’s/Fitch), priced the bonds at
8%, in line with final guidance. Marketing
began at 8.125% area.
The Reg S bonds are being issued in the
name of SSMS Plantation Holdings. SSMS
will guarantee the notes, together with
Citra Borneo Indah.
The notes will be rated on par with the
issuer. Fitch has a positive outlook on the
company.
Proceeds will be used to repay bank loans
and for general corporate purposes. Also,
it will use up to US$10m to invest in forest
conservation in Indonesia to be managed
initially through The Forest Trust as a
Forest Conservation Fund.
BNP Paribas (B&D) and Citigroup were joint
bookrunners, as well as lead managers with
CIMB.
In its first attempt, SSMS had given final
guidance of 7.0% on five-year non-call three
notes, versus the initial 7.25% area. Total
orders reached US$650m.
The company owns and operates 19 oil
palm estates covering 70,603 hectares of
planted area in Indonesia.› TBL TIGHTENS DEBUTIndonesian palm oil and sugar producer
TUNAS BARU LAMPUNG has priced US$200m five-
year non-call three notes at 7%.
The issue drew orders of US$1.7bn,
allowing the leads to tighten price guidance
from the initial 7.5% area.
Asia was allocated 98% of the notes and
Europe got 2%. In terms of investor types,
a combined 97% were fund managers and
securities firms, a total of 2% were banks
and private banks and 1% were sovereign
wealth funds.
CLSA and Mandiri were joint global
coordinators and bookrunners on the Reg S
senior offering.
TBLA International, a wholly owned
subsidiary of Tunas Baru Lampung, is issuer
on the notes with the parent as guarantor.
The notes are expected to be rated Ba3/BB–
(Moody’s/Fitch), in line with the company.› GOLDEN ENERGY HIRES FOR DOLLARSGOLDEN ENERGY AND RESOURCES has hired Credit
Suisse and CLSA as joint global coordinators
and joint bookrunners for a proposed
offering of US dollar senior notes.
The Indonesian coal producer will hold
meetings and conference calls with fixed-
income investors in Singapore, Hong Kong
and London, starting on Monday.