IndoAgri

IndoAgri: subsidiary PT SIMP has filed an abridged prospectus in respect of the proposed IPO in Indonesia after receiving approvals from the Indonesian regulator…

PT SIMP will use 40% of net proceeds to reduce indebtedness, 50% for capex for new plantings, and 10% for capex for construction of pdtn facilities.
PT SIMP indicated a div policy of not more than 40% of net income, beginning FY11.
Adds, depending on mkt conditions, PT SIMP may decide not to proceed with the IPO and Listing.
Co didn’t give details of the amount it intends to raise in the IPO…

Street has mixed views on the PT SIMP spin off, with one camp citing it as a possible share price catalyst for IFAR, and the other side cautioning that IFAR’s earnings would be diluted and that it would become an “orphaned parent” and attract a holding company discount.
Street has a wide range of recent TP btwn $2.05 – 3.00.