Indonesian Pineapple Giant Gunung Sewu Said to Consider 2016 IPOJoyce Koh and Fathiya Dahrul
Indonesian conglomerate Gunung Sewu Group, with businesses from pineapples and gummy candy to insurance and property, is weighing an initial public offering, people with knowledge of the matter said.
Gunung Sewu is considering a share sale as soon as mid-2016, according to the people, who asked not to be identified because the deliberations are private. The offering could raise at least $300 million, the people said.
Indonesia plans to cut taxes and spend more on infrastructure next year to revitalize an economy growing at the slowest pace since 2009. A stock offering by Gunung Sewu could bring a boost to the Jakarta bourse, where initial public offerings have raised $711 million this year, data compiled by Bloomberg show.
Gunung Sewu hasn’t made a final decision to proceed with a listing, according to the people. The company didn’t respond to e-mails seeking comment, while a person who answered the phone at Gunung Sewu’s headquarters said no one was immediately available to comment.
The company’s Great Giant Pineapple business processes more than 500,000 tons of the fruit annually, while its Yupi Indo Jelly Gum unit produces 6 billion pieces of candy each year, according to its website. Gunung Sewu, which was founded in 1953 by Dasuki Angkosubroto as a trader of staple commodities, now employs about 25,000 people.
Nippon Life Insurance Co. agreed in May last year to buy 20 percent of Gunung Sewu’s life insurance arm, PT Asuransi Jiwa Sequis Life, for 4.87 trillion rupiah ($351 million). Its property subsidiary Farpoint Realty Indonesia has developed and managed residential, office, hospitality and retail properties for more than 30 years.