JAKARTA: Indonesia's largest noodle instant maker PT Indofood Sukses Makmur Tbk plunged 6.19% or IDR350 to IDR3,500 at the Jakarta Stock Exchange as of 2.44 p.m. local time following the announcement of initial public offering price of PT Salim Ivomas Pratama Tbk.Salim Ivomas, a subsidiary of Indofood, will raise IDR3.47 trillion after it set the IPO price at IDR1,100 per share.The company previously offered IDR1,060-IDR1,700 per share. Salim Ivomas issued 3.06 billion shares or equal to 20% of its total share to public.Salim Ivomas will allocate 40% of the proceeds to settle bank loan, 50% for funding plantation division, particularly for new planting and maintenance, and constructing processing facility, while the remaining 10% for financing oil and fat division especially to add production facility and to purchase ship.Half of the proceeds will be used gradually and projected to be completed in five years. The company allocated IDR2.2 trillion for its capital expenditure. Salim Ivomas, which ownz 59.48% shares of an oil palm plantation company PT PP London Sumatra Indonesia Tbk, is plan to extend land area of oil palm plantation by 15.000 hectare per year. Total oil palm planted area will increase more than a half from 205.000 hectare this year to 280.000 hectare in the next 5 years.The oil palm production this year is estimated to increase 10% to 740.000 ton compare than last year. Meanwhile, the company targeted to increase the sugar cane plantation area by 18.000 hectare in the next 2 years. (wiw)