Atmindo to Open Dec IPO Bonanza With $2m Target

Jakarta. Boiler manufacturer Ateliers Mecanique D'Indonesie aims to raise up to Rp 33.6 billion ($2 million) from selling new shares next month.

The company, known as Atmindo, is offering 240 million shares or 22.22 percent of its enlarged capital to the public in order to fund its operations and repay bank debts, according to Atmindo president director Rudy Susanto.

"We wanted to cut bank interest costs," Rudy told reporters on Wednesday, adding that the company aims to pay back up to Rp 22 billion of a Rp 50 billion outstanding loan to HSBC.

The offering is slated for Dec. 1-3 with Panin Sekuritas serving as the lead underwriter.

Atmindo is set to float the shares on the Indonesia Stock Exchange (IDX) on Dec. 9.

Atmindo makes boiler units that are used widely to produce steam in palm oil manufacturing and power generation.

The company's main customers now are palm oil producers, meeting an estimated demand of 1,200 boilers over the next five years.

Atmindo issuance would start a busy IPO period in December, with companies like rice producer Buyung Poetra Sembada and canned beverage maker Kino Corporation also gearing up for their initial stock offering before the end of the year.