Submit News Stories or Press Releases
FEED NEWS

Malaysia - Lau family firm 1st to get Indon listing

Published on 23 February, 2006, Last updated at 05:15 GMT
 

14th Feb, 2006: JAKARTA - PT Malindo Feedmill Tbk, the first Malaysian-owned company to list on the Jakarta Stock Exchange, expects its profit before tax to grow between 15% and 20% this year buoyed by its expansion programme.

“Last year, we made RM30mil profit before tax. We expect next year to be better as we have embarked on an expansion programme to increase our production capacity,” said director Datuk Francis Lau, who is also executive director of Bursa Malaysia-listed Leong Hup Holdings Bhd, one of Malaysia's largest integrated poultry companies.

Second Finance Minister Tan Sri Nor Mohamed Yakcop, who attended the listing ceremony, said he was impressed that PT Malindo became the first Malaysian company, which started from scratch, to be eventually listed on the Jakarta Stock Exchange.

“I was told that I was the first minister from Malaysia to be given the honour to ring the bell to commence trading at the Jakarta Stock Exchange,” he added.

Datuk Francis Lau (left) and Tan Sri Nor Mohamed Yakcop at the listing ceremony in Indonesia.

Established in 1998, PT Malindo Feedmill's principal activities include the production and marketing of animal feed, parent stock day-old chicks, commercial broiler day-old chicks and layer chicks.

PT Malindo Feedmill made an impressive debut yesterday, opening at 1,150 rupiah (43.5 sen) for a 30.68% premium over its initial public offer (IPO) price of 880 rupiah (33.3 sen).

The counter touched a high of 1,400 rupiah (53 sen) and a low of 970 rupiah (36.7 sen) before closing at 1,130 rupiah (42.8 sen) on a volume of 11.76 million shares.

Lau said after the listing ceremony that PT Malindo Feedmill also expected to garner an 8% share of Indonesia's poultry market in three years. It currently commands 4% to 5% market share.

“We will use 70% of funds raised from our IPO to expand our breeder farm and hatchery in West Java, 15% for working capital purposes and the remainder for the repayment of loans,” he said.

PT Malindo Feedmill has facilities in north Jakarta and Surabaya. The group produces 345,000 tonnes of poultry feed and 50 million broiler day-old chicks per annum.

Lau said the expansion programme was expected be completed by the third quarter of this year.

This will enable the company to double production capacity from 50 to 110 million broiler day-old chicks annually when completed.

“The new breeder farm will produce 110 million day-old chicks per year,” Lau said, adding that the Indonesian market would be larger than that of Malaysia in a few years.

PT Malindo Feedmill is 81.6%-owned by Dragon Amity Tbk of Malaysia, which is owned by the Lau family, 0.4% by Malaysian businessman Lai Hup Heng and 18% by the investing public.

 

 
COMMENTS
 
 
opens in a new window or tab
feedmachinery.com
  • 2017 © FeedMachinery.com. All Rights Reserved.