Lead manager ABN AMRO Rothschild has launched roadshows for an IPO of Petra Foods that could raise up to $103 million pre-greenshoe. Presentations began on Wednesday, with the offering scheduled to price on October 27 ahead of a domestic retail offer running from October 29 to November 3.
The company will offer up to 187.4 million shares of which up to 127.4 million will constitute new shares and 60 million will comprise existing shares. A price range of S$0.79 to S$0.93 has been set.
Pre deal, the Chuang family of Indonesia held 79.4% of the company through a number of vehicles, one of which, McKesson Holdings, will divest some shares through the IPO. The main vendor, however, is Canzone Ltd, an SPV of CLSA's private equity arm, which purchased 18.2% of the company in 2001 Its stake is likely to fall to around 5%.
The freefloat will amount to about 30% pre greenshoe.
Based on the indicative price range, the company is being marketed on a 2005 P/E ratio of 8.5 to 10 times earnings. This represents a discount to comparable Singapore listed stocks such as Singapore Food, Want Want and People's Food, which are said to be trading in an 11 to 14 times band.
The company derives 70% of its revenues and 30% of its net income from manufacturing cocoa ingredients. With a global market share of 7%, it has manufacturing facilities in Thailand, Malaysia and Singapore, as well as Brazil and Mexico.
The remaining 30% of its revenues and 50% of its net income derives from branded chocolate products. It has, for example, a 57% market share in Indonesia through brands such as Silver Queen and Top.
New money from the deal is being raised to expand its product penetration in Malaysia and Singapore. It also wants to use some of the cash to set up new manufacturing facilities.
Net profit for 2003 amounted to $11.8 million and stood at $9 million as of 1H04. EBITDA amounted to $31.5 million in FY2003 and $19.6 million in 1H04. The company is said to have achieved a revenue CAGR of 49% between 2001 and 2003 and an EBITDA CAGR of 32%.
