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PalmCo Would not Join The Stock This Year: The Markets Would be the Consideration



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PalmCo Would not Join The Stock This Year: The Markets Would be the Consideration

InfoSAWIT, JAKARTA - Sub Holding Perkebunan Nusantara III (Persero), PalmCo announced to cancel the plan of initial public offering (IPO) in Bursa Efek Indonesia (BEI) this year. Director of PalmCo, Jatmiko Santosa said that the decision was taken after considering the market condition which many not deliver profits.

“We would not get (IPO) this year. The market situation is not good enough,” he said in Jakarta, Wednesday (10/1/2024).

He also told that the company has prepared everything to get IPO, starting from environmental, social, and governance (ESG) until Roundtable Sustainable on Palm Oil (RSPO) that reached 100%.

One major factor that Jatmiko told was enterprise value (EV) to earnings before interest, taxes, depreciation, and amortization (EBITDA) which tends to be undervalue. He told, when indeks harga saham gabungan (IHSG) reached 7.229, EV ration to EBITDA in agro sector just reached 5. This is the undervalue. "If the number [EV to EBITDA] in agro sector just reached 5, this is the undervalue, right?” Jatmiko said in the Refleksi Industri Sawit 2023 dan Tantangan Masa Depan, that InfoSAWIT attended in Jakarta

PalmCo has qualified the terms and conditions, such as, RSPO certificate that reached 100%. But the market condition does not support still and this made the company postpone the IPO.

PalmCo showed its seriousness to face social and environmental challenges by implementing ESG standards. But the uncertain markets and the undervalue he discussed, would be the main factors to decide that PalmCo would postpone IPO plan in BEI this year.

It reflected the awareness of the company to anticipate the risks but maintain sustainable business in the market dynamic which is in fluctuation still. Though it cancels to get into the stock this year, PalmCo is committed to keep increasing the performance and preparedness to get IPO in the right time. (T2)

 


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