Jakarta, Aug 7 - Indonesian state plantation firm, PT Perkebunan Nusantara III, said on Thursday it expects to raise around 1.7-2.0 trillion rupiah ($187-220 million) from an initial public offering within the next couple of months.
Indonesia's government plans to sell up to 30 percent of the plantations company in an IPO in the third quarter, with proceeds earmarked for the expansion of PTPN III's palm oil and rubber plantations, said Chairul Muluk, a director of the firm.
"The proceeds will be used to expand our plantation areas, build more CPO processing plants," Muluk said.
PTPN III is one of the three state plantations firms that the government plans to privatise this year. The other two are PTPN IV, a palm oil, tea, and cocoa producer, and PTPN VII, a palm oil, sugar, and tea producer.
Several Indonesian commodities-related firms, which have benefited from rising coal, metal, and palm oil prices, have lined up to list, hoping to attract strong investor interest.
The government plans to privatise state-owned firms including steel producer PT Krakatau Steel this year in a bid to improve performance. ($1=9100 Rupiah)