Another Mission Behind Garudafood’s IPO

Garudafood is using an initial public offering (IPO) to convert its debt. The low number of public shares has the potential to make the company’s stock transactions not liquid.

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Eagerly awaited by investors for years, PT Garudafood Putra Putri Jaya Tbk will finally hold an initial public offering (IPO) next month, with the potential to earn IDR 1 trillion in fresh funds, plus the implementation of mandatory convertible bonds (MCB). However, the low number of shares to be released for public investors will make the transactions of its stock on the Indonesia Stock Exchange (IDX) not liquid.

Based on its prospectus, Garudafood will offer 35 million new shares or 0.47 percent of paid-in capital with a bid price of Rp 1,100-Rp 1,400 per share. The potential funds to be obtained are Rp 38.5 billion-Rp 49 billion.

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