Indofood Sukses Makmur (INDF) – Maintain BUY
Price: Rp5,450- Target Price: Rp6,000
- IPO on SIMP. Will be listed in BEI on 9 June 2011 with offer price of Rp1,100/share.
- Proceeds from listing. Around 40% of the proceeds will be used for debt repayment and the rest is going to be used for expansion.
- Dilution effect. Post-IPO, INDF’s direct ownership will be diluted from 8.4% to 6.7%.
- Valuation and recommendation. With offer price at Rp1,100/share, we calculate the fair value of SIMP is Rp1,788/share, 63% upside from the current offer price. IPO of SIMP will become positive catalyst to INDF’s share price. Maintain BUY.
- Indofood Sukses Makmur (INDF) - SIMP Listing (360.3 KiB)