No Stock Split for Nippon Indosari; Bonds Issuance Depends on EGM
Nippon Indosari Corpindo, Indonesia’s largest producer of bread products, will not pursue a stock split to improve its stocks' liquidity on the Indonesia Stock Exchange (IHSG). According to analysts, the company's stocks are fairly active and thus will not need such a measure. Nippon Indosari's stocks have fallen by around 11 percent this year. This performance is in stark contrast with 2012 when it gained 112.3 percent during the year.
For the year 2012, Nippon Indosari posted net profit of IDR 149.15 billion (US $15.5 million), a 28.66 percent increase compared to the previous year. This profit was mostly supported by an increase in its bread products sales of 46.4 percent to IDR 1.19 trillion (US $123.3 million).
The company has plans to realize three new factories in the country, which are funded through the issuance of bonds (worth IDR 1 trillion or US $103.6 million), if approved in the extraordinary general meeting (EGM) this Thursday (28 February). The company's aim is to issue these bonds in semester II-2013. Proceeds will be used not only for the establishment of three new factories, but also for bank debt repayment.
Nippon Indosari's stocks gained 0.81 percent on Wednesday's trading day.
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