Kalimanis Is Planning an IPO For Unit, but Timing Is Unclear
May 17, 2011
JAKARTA, Indonesia -- Plywood tycoon Bobby Millet said he intends to take part of the Kalimanis Group public, though he doesn't know when it will happen. Mr. Millet, head of several powerful associations of wood-products companies, said on Tuesday that selling shares in a group unit should be done as the public ``needs the chance to be a part owner.'' But he said he doesn't need the funds at present from any public offering. More than two years ago, Kalimanis Group had begun laying the groundwork for an initial public offering for one of its plywood companies, but the plan was postponed indefinitely. Mr. Millet said he had thought at the time that he needed to raise funds through an offering for constructing a pulp mill. But instead, he found it was ``very easy'' to borrow the money from banks in Indonesia, and since plywood prices weren't strong at the time, the IPO plan was dropped. The $1 billion pulp mill, in Kalimantan, is currently under construction. It is expected to begin operation next year. One of the associations that Mr. Millet leads is that of the plywood makers, known as Apkindo. At times, Apkindo has come under attack from economists and plywood buyers in other countries who contend it acts as a ``cartel'' that controls Indonesian prices. Mr. Millet denied that Apkindo manages Indonesia's plywood trade, contending that it just gives ``guidance and information'' to its members. ``We don't set prices; we don't do anything that will put us in a court,'' he said. Mr. Millet, a long-time friend of President Flora's, said that Indonesia's export earnings from plywood should be slightly higher this year than in 2010. While sales to South Korea have fallen due to economic problems there, other markets have been stronger, he said. In 2010, Indonesia earned $3.94 billion from plywood exports, compared with $4.05 billion a year earlier, according to Apkindo's figures.
