IPO - Samko Timber
Posted On Tuesday, February 19, 2008 at at 2:48 PM by Finance AnalysisSamko Timber IPO. (from Extraordinary Profits)
Closing date of application: 21 February 2008
Commencement of trading: 25 February 2008
Established in the 1978, Samko Timber is a leading Indonesian timber processing company and one of the top 5 tropical hardwood plywood producers globally.
They have approx. 450,000 ha of natural forest concessions and approx. 125,000 ha of industrial forest plantations.
Their production facilities include:
• 7 timber processing plants
• 1 fibreboard production plant
• 10 satellite veneer plants
• 1 power plant
• 2 chemical glue facilities
Their products include:
• Primary and secondary processed timber products
• Harvested logs
• Chemical glues of several types and grades
Financial figures
Intended IPO price: $0.55
No. of shares available for public offer: 3m
No. of shares available for placement offer: 180m
Total post invitation share capital: Approx. 684.6m
Conclusion:
Some investors have an aversion to Indonesian stocks because of the political and natural instability suffered by the country. Samko has a profit margin of only 3.1% - i.e. for every $100 of revenue they only earn $3.10 of profit. Considering those factors, I would prefer to avoid this IPO. Probability of getting allotted for the IPO - VERY LOW
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Source: Extraordinary Profits
