Indonesia`s First Resources rises on Singapore debut

Singapore (Antara News) - Indonesia-based crude palm oil producer First Resources Ltd was trading above its initial public offering price on its debut in Singapore.

At 9.39 am (0139 GMT), First Resources was at 1.23 Singapore dollars, compared to the IPO price of 1.10 dollars, with 23.92 million shares traded, Thomson Financial reported.

The company sold 225 million shares, comprising 175 million new shares and 50 million vendor shares.

First Resources has 13 palm oil plantations and six palm oil mills located in Riau province of Sumatra, Indonesia.

From the net proceeds of about 185.3 million from the sale of new shares, the company will spend 89.5 million dollars on expanding plantations, constructing more mills and acquiring additional production facilities.

It will spend 81.2 million dollars to buy additional stakes in units - 63 percent in PT Meridan Sejatisurya Plantation and 38 percent in PT Pancasurya Agrindo. The remainder will be used for working capital.

First Resources achieved a 10.6 percent compounded annual growth in sales in 2004-2006. In the first six months of 2007, the company booked revenue of about 84 million US dollars, up 101.8 percent from a year ago, while net profit surged 144.7 percent to 15.2 million dollars. (*)
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