the project in indonesia is run by a public listed company call PT first flower
listed on singapore exchange SGX code infinio W130125..
i can not find it on SGX quote??? they seems to have issues lots of convertible notes at 0.02 sg
i found the preliminary script before listing
as below
what all that mean
PRE-IPO INVESTMENT PROPOSAL OF PT. FIRST FLOWER
WORLD’S FIRST NIPAH SUGAR & ETHANOL MEGAPROJECT
Kode SGX: Infinio W130125
Executive Summary
• Company name: PT. First Flower
• Project: World’s Fist Nipah Sugar & Ethanol Megaproject
• Chairman: Prof. Dr. Bungaran Saragih ex Minister of Agriculture, Republic of Indonesia
• CEO: Dr. Taco Bottema, agribusiness consultant for Bill Gates
• Collateral: nipah plantation 49,421 hectares in South Kalimantan and East Kalimantan.
• Financial Value: USD 3,46 billion (2010), USD 6.871 billion (2011).
• Auditor: Lloyds Earle Panicker International Inc
• Financial Advisory: FMA Group
• Underwriting by Quicksilver Worldwide Inc
• Go Public (IPO): December 2011 – February 2012 in SGX (Singapore Stock Exchange).
• IPO Strategy: Reverse Take Over (RTO)
• SGX Trading Code: Infinio W130125
• Pre IPO Share price: $ 0.2
• Projection for IPO share price:
o $0.6 gain 300%
o $1.0 gain 500%
• Learn study case: Wilmar International
o 2006 RTO : $0.5
o 2011/2012 : $5.8 (after stock split 1:3)
• Agency: PT. Bruton International
• Investment contract:
o Bruton International joint venture agreement
o FirstFlower nipah plot joint venture agreement
PT FirstFlower (PTFF) is incorporated in Indonesia. PTFF is set to become the leading company in Indonesia specializing in use of degraded wetlands, use of nipah palm products and green fuel Research and Development. FF has access to a combined total of approximately 20,000 hectares of currently degraded inland wetland, in eastern and southern Kalimantan in Indonesia. Many more areas are currently unused after having been deforested.
PTFF’s world-wide sales and marketing of the nipah plots is under the management of FirstFlower International Limited (FFIL) with appointed Consultants and Representative Sales and Marketing offices in strategic locations worldwide. For more information, please contact FirstFlower International Sales and Marketing office in Hong Kong.
The PTFF management team comprises an experienced group of professionals with extensive knowledge in the fields of alternative energies and biofuel. With the combination of agricultural and technological innovations and intellectual property rights, our team controls all aspect of proven nipah palm research and ethanol production. With bio-engineering and high tech conversion technologies, the team is able to commercialize the process of producing high grade ethanol and valuable by-products.
The team of multi disciplinary scientists is focused on and dedicated to develop a cost-efficient methodology to optimally use degraded inland wetlands, to develop improved nipah palm fit for production on an industrial scale at competitive costs, to meet the ever increasing international demand for sustainable and renewable non-food biofuel.
The PT FirstFlower management team is committed in meeting the challenges in the growing market of sustainable and renewable energy resources as well as to contribute to improved and sustainable land use. As part of our strategy, PTFF is aggressively pursuing the combination and improvement of frontier technologies combined with long term profitable ethical investment for the future of the local community, green energy users and the environment.
Our Vision
• To become the first commercially Green-Bio-Petrol producing Company in Asia and to become a Market-Leader setting new world standards to reduce CO2 Emission beyond UNFCCC and Kyoto Protocol agreed quota.
• Contributing to the creation of a Green Biofuel alternative through innovative technologies combined with socially responsible business practices that will go a long way in protecting the environment.
• Deploying one of the most exciting environmentally friendly bio-fuel alternative are Sustainable Non-Edible & Non-Toxic (NE & NT) Green Biofuels that eliminates the demand to use food crops as biofuels.
• Collaborative role with the provincial people of Kalimantan in the deployment of latest environmentally sound and efficient technology to produce Nipah Palm Biofuel as a leading source of sustainable green energy.
Where Nipah Green Biofuels support the reduction of massive deforestation simultaneously serving as a major contributor to reduction of global warming.
Our Objective
To produce within 5 years of 200 million liters per year a variety of Sustainable Non-Toxic Green-Bio-Fuels and maintaining price stability that will create a thriving healthy economic environment to those who are committed to Green-Bio-Friendly Fuels for the Automotive, Aviation and Marine market sectors.
Our Mission
To achieve these milestones, through a balanced collaboration with the provincial people of Kalimantan in the deployment of the latest environmentally sound but proven efficient technology to produce the lowest in price and highest qualitative Octane containing Nipah-Palm Biofuels.
Action to Realize the Vision
By investing in the Nipah Palm venture to contribute to the creation of Green Biofuel alternative, moving the world beyond conventional approaches to sustainable green energy.
Be Part of the Future – Investment in Nipah Plots
“As a Sustainable and Renewal fuel, Nipah Biofuel never depletes and it has no environmental risks. True Green BIOFUELS”
MANAGEMENT OF PT. FIRST FLOWER
BOARD OF COMMISSIONERS
Prof. Dr. Bungaran Saragih Ph.D. – Chairman
Since 1999, was the Minister for Agriculture and is the Director for Developments Studies Bogor Agriculture University. Holds a Ph.D. & M.Sc from North Carolina State University and writer of many scientific Books on Agriculture. He is a Member of all the foremost world organizations involved in Environmental Conservation, and Agriculture.
Dr. O.M.B. de PONTI
In 1971 Dr. Ir. Orlando de Ponti graduated as Agricultural Engineer at the Wageningen Agricultural University in Plant Breeding, Genetics, Plant Protection and Horticulture. In 1980 he obtained his doctorate from the same university.
From 1971 to 1991 he worked in Wageningen, the Netherlands, for the Directorate for Agricultural Research (DLO) of the Ministry of Agriculture and Fisheries. First as a plant breeding scientist at the Institute for Horticultural Plant Breeding (IVT-DLO), then as Head of the Vegetables Breeding Department at the same institute and finally as Director of the Research Institute for Plant Protection (IPO-DLO).
In 1991 Orlando de Ponti made the change-over from public research to industry, when he accepted the function of Managing Director Research and Development and member of the Management Board of Nunhems B.V., Haelen, The Netherlands, which company belongs today to Bayer CropScience AG. Since May 2008 he is Senior R&D Advisor with Nunhems B.V.
Furthermore, Orlando de Ponti is Immediate Past President of the International Seed Federation (ISF), and member of the supervisory board of three international breeding companies. In addition he holds various advisory positions in academia and industry.
Mr. Gert-Jan van der Putten
Gert-Jan van der Putten was formerly Corporate Executive Vice President of ABNAMRO Bank N,V in 2007. He has held various senior executive position with ABNAMRO Bank in Europe , Asia ,North and South America and Middle East over 30 years.
His experience is particularly in Corporate and Investment Banking.
Gert-Jan holds a law degree from the University of Nijmegen and has followed executive management programs at INSEAD and Harvard. He is currently a director of various private companies.
Mr. Kea Kah Kim – Commissioner
Graduated from University of Leeds, England. Holds a B Sc (Combined Hons) in Civil Engineering and Operational Research. He has experienced in banking and corporate finance. He joined a local bank in 1982, leaving as Head of Corporate Planning. In 1984, he joined his family business which is an Indonesian group with diverse businesses in timber, logging, manufacture of wood products, shipping and property investments. Between 2001 and 2008, he was the Chief Executive Officer of two companies which are listed on disallowed of Singapore. The companies are involved in publishing, media and telecommunications.
BOARD OF DIRECTORS
Dr. Taco Bottema Ph.D. – Chief Executive Officer
Dr. Bottema, holds a Ph.D. in economics and social sciences from the University of Nijmegen, and did his masters at the International Agriculture University of Wageningen, Netherlands. Has lived and worked in Asia for more than two decades. His core expertise is in the field of development of sustainable commercial agriculture. Dr. Bottema has served in many senior management positions in the UN and also for the EU, Asian Development Bank funded projects, developing and implementing in-country and regional development of sustainable agriculture, including compliance to international (WTO, EU, AGOA) standards and practices. Dr. Bottema is an experienced project manager who has worked in many countries in Asia and Africa, and he has a track record in the area of successful development, with capitalization of large scale plantation development and ventures, focusing on bio-fuel, banana, and other commodities.
Through international involvement in R&D, Dr. Bottema has developed contacts and access to a wide range of technologies and a network of experts. Dr. Bottema is well familiar with the situation in Indonesia where he has had many professional assignments.
Dr. David Allorerung - Chief Technical Officer
Served as Senior Researcher of the Indonesian Centre of Estate Crops Research & Development, Ministry of Agriculture-Indonesia. He is the leading scientist that has produced profitable results for Ekatjipta Foundation, Indofood Sukses Makmur’s Jatropha Curcas & Sugar Cane projects, ICERD & P.T. Radjawali Nusantara Estate Crops. Today he is the leading Scientist on Nipah Palm Plantation.
H.T. Luntungan – Chief Operating Officer
Graduated from the Sam Ratulangi University, Manado, Indonesia, M.Sc. from University of Los Banos Phillipines. He is the leading Breeder and Scientist of Coconut, Palm Oil plantation, Corn, and also on Nipah Palm Plantation. He has held many leading Executive positions as a Chief Operating Officer with Astra Palm Oil Plantation.
INTERNATIONAL MANAGEMENT TEAM – FIRSTFLOWER INTERNATIONAL LIMITED (HONGKONG)
Lawrence Changmh – Chief Executive Officer
He has more than 18 years of marketing experience in various industries that includes wealth management, chain store and network marketing. As chief executive officer of FirstFlower International Limited, he is responsible for addressing the daily operational and business development of our company.
Prior to joining FirstFlower International, he was a general manager - marketing, in the beauty care division of a company listed on the Main Board, Kuala Lumpur Stock Exchange from year 2005 to 2007, in which he successfully create a ‘Malaysia Book of Records’ for the largest number of chain stores opening in a short period of time.
In year 1994, he served as a marketing consultant for BHLB Pacific Trust Management Berhad, the second largest private-owned unit trust company in Malaysia, for two years to promote various wealth management products.
He was then joined as a marketer in a well known multi national company for 7 years where he was nominated as one of the top achiever in the company.
He completed his Advanced Management Program & holds a Masters of Business Administration from Fudan University, Shanghai.
Wayne Chan – Operation Manager
Wayne Chan serves as the Operation Manager of FirstFlower International Limited (FFIL).
With his experience serving in various prestigious Multi-National Corporations, he is now responsible for day to day operational and coordination jobs with our Worldwide Representative Office.
He received his bachelor degree (Hons) of Public Policy and Administration from National Chi Nan University, Taiwan in 2003 year.
INTERNATIONAL SALES & MARKETING - PRINCIPAL CONSULTANTS
Professor Dr. Zheng Congda
Professor Dr. Zheng Congda , visiting scholar of The University of Maryland and The University of Chicago, Professor of Advanced Economic Management, Philosophy Management.
Professor Dr. Zheng worked for Ministry of Justice Institute of Forensic Science, Ministry of Justice of PRC, and JudicialAccounting Instistute of Forensic Science Centre as Chief, Principal, Researcher, Chief Judge, and held hundreds cases of judgment. He had also employed as a member of specialists of JudicialAccounting Research Centre of Supreme People’s Procuratorate of the PRC.
Sir Dr. Erwin AC Ng
Sir Dr. Erwin AC Ng was graduated his degree from the American Culture University;
Awarded Knight (K.J.O.M.) of Australasia by Prince Leonald I in 2007; Named in “Who’s who in Malaysian Chinese Community, New Millennium” in 2001; Named in “Who’s who in Malaysian Chinese Community, 50th Anniversary Special Issue” in 2007.
Sir Dr. Erwin AC Ng has been working for many multi-national company as Chief Strategist Officer, such as NanoPrõ and GETHA, currently, he serve as an CEO for ACUME Sdn Bhd (MSC Status Co) , Chairman of The Oceania (HK) Hotel Management Ltd, Adjunct Visiting Professor of Southern Pacific University of America.
Dr. Francis Tan SH
Francis is the Managing Director of Goldman Palm Pte Ltd and the Principal Consultant of FirstFlower International Limited (Hong Kong), founder of Living Plus Consultants Singapore. He is currently a visiting Professor for the Institute of Knowledge Economics & Management (IKEM) Fudan University, China, EUI East-West Research Academy Sdn Bhd and CPD Training and research Academy, Malaysia.
He holds a DBA from the European University of Ireland & MBA from Shanghai Jiaotong University, China. He also lectures at the Asia School of Business and other Management Institutions in Singapore.
Dr. Krisana Kritmanorote
Dr. Krisana Kritmanorote was awarded his doctor degree in Management of Ramkamhaeng University of Thailand, as a lecture and speaker for AIA and Life Underwriters Associations of Hong Kong, Malaysia, Singapore, the Philippines, Taiwan, China and other countries in Asia Pacific.
He was also a Special Advisor for Education of Bangkok Metropolitan Administration from 1990 to 1997 and appointed by the Defense Minister’s as a member of the Defense Minister’s Advisory Broad in 2001.
Now, he is jointed with Ayudhya Allianz C.P. Life as Director, Chief Agency Officer and Chairman (agency) of Ayudhya Allianz C.P. Life Public Co Limited. He is also the owner and founder KK Group and has the KK City (head office) at Nonthaburi of Thailand.
Mr. Christopher Choi Hee-Tae
With more than 25 years of executive and management experience in the business management, Christopher brings a vast amount of valuable knowledge about the Asia market place. He has successfully spearheaded the development of full-business operations in Asia markets for several Multi National companies.
Christopher Choi holds for bachelor degree of Fiber Engineering of in 1988, worked as an managing director in Orlando Florida since 1982, now he is appointed as Principal Consultant for FirstFlower International Ltd, he is responsibility in developing the Korea, Japan and China market.
Mr. Ab Azid B. Hj Che
Mr. Ab Azid B. Hj Che is the Executive Director of Malaysian Graduate Entrepreneurship Development Centre, University of Malaya with more than 20 years experience as a lecturer in Mathematics, Statistic and Econometrics and administration in University of Malaya. He is also a member of Institute of Statistician, United Kingdom.
University of Malaya has awarded the responsibility to establish Malaysian Graduate Entrepreneurship Development Centre (PUSMAL) in 2005. PUSMAL would act as a bridge in connecting the industry players with government towards producing new entrepreneurs amongst graduates.
Ms. Nguyen Thi Le
Ms. Nguyen Thi Le, Bachelor of Laws, International Relations and English, she has over 20 years experience of Sales and Marketing field and working with foreign corporations.
She established her own company specializing in investment consultancy and design in 2008, she has extensive experience in planning design and urban design consultancy as well as planning strategy for economic development Mekong delta. Currently, besides being a representative of Trà Vinh Province in investment advice, she is also working along with Vietnam Academy of Science & Technology (Institute of Applied Materials Science – Ho Chi Minh City)
Mr. Hori Akinori
Mr. Hori Akinori graded in Hiroshima University - Master’s Degree in Chemistry. He is the founder and CEO of the Hopewill Group (Holdings) Ltd., the leading consulting and total solution firm for Japanese companies to reach the foreign markets.
Mr. Hori came to Hong Kong in 1996 as an expatriate from a trading firm from Japan. In 2003, resigned his firm and started his own company, the Hopewill Group (Holdings) Ltd which offering Cost Reduction, Accounting, Marketing, Business Consulting and Life Planning. Mr. Hori now is advisor of PT FirstFlower for Japan region.
About Nipah Palm
Nipah is one of the eldest species of the palmae species, and grows in wet coastal lands, primarily in SE Asia.
The sap has long been known to contain sugar (10-15%) which can be fermented and made into sugar, vinegar or ethanol. The extraction of sap of the stems (“tapping”) does not disturb the natural ecosystem or the plant. The Nipah ecosystem is based on slits and soil and organic particles in rivers and streams which, when deposited downstream, provide the nutrients and the seed bed for Nipah palm.
In other words, nipah performs a useful function in retaining the run off material in coastal flats, preventing it from entering the ocean causing destruction of coral, and affecting aquatic life forms. Usually Nipah grows in brackish coastal flats, and protects the land side of mangrove. Nipah also grows abundantly along river flats. Maintaining Nipah is thus important for many reason. Nipah is also fit for degraded coastal wetlands.
Production
The major constraint in extracting sap from Nipah is the labour required, while the processing requires economies of scale. The flowers stems need to be tapped with a special hammer, to defibrilize the cells, to facilitate the sap stream, for some two weeks daily, prior to extraction of sap. Second, the stems needs to be freshly cut every day, in order to cut away coagulated sap on the tip. Modern R&D has found ways to deal with these problems. Sap is collected twice daily, in the morning and in the evening. Under traditional conditions tapping can be done for 40 to 60 days per flowering period. This number can go up with improved agronomic practices, and reach 120 days per year. Nipah can be tapped for many years and decades without any noticeable dysfunctional effect. Research has shown that plants can be tapped for 40 to 60 years. This is the most exceptional.
Productivity
Yields of sap vary, superior cultivars have been selected in PNG, Malaysia, Philippines and Indonesia. Under traditional conditions tapping may yield between 0.3 and 1.6 liters per tapping, the latter one however in an uneven spread. Experiments have shown yields of well over 1 liter per tapping per stream. Plant density varies under traditional conditions, from small and sense clusters to 2500 stems per hectare. Recent R&D has shown that 1.6 liter per tapping is possible, and that the plant density is the main factor. Though applied R&D is still necessary, the main indication is that a plant density of between 600 and 900 is optimum. Sap yields would be around 750 times 2 liters is 1500 liters of sap per hectare per day. The annual yield per hectare would be, on the basis of 120 days of tapping, 1500 times 120 equals 180,000 liters of sap. Flowering induction is both necessary and possible to maintain a steady supply on a daily basis.
Processing Efficiency
The sap contains 10 to 15 % sugar, and this sugar can be fermented into ethanol. In theory 54% of the sugar can be converted into ethanol, modern fermentation techniques come close to this theoretical optimum. Of major importance is that the sap is put into controlled fermentation as soon as possible after harvesting. (This applies to all sugar based crops and produce). Modern distillation techniques are highly efficient at some 97.5% efficiency. The formula for the conversion of sap into ethanol reads thus as follow: Yield in ethanol equals total quantity of sugar sap harvested (0.21) times the theoretical yield (0.54); times distillation efficiency (0.975).Note that the efficiencies can be improved and that the above estimations are likely to be conservative. The outcome of the formula is between 5 and 6 %.In other words, 100 liters of sap would generate 5 to 6 liters of ethanol at start-off efficiency. This can go up around 7-8 % with improved sugar content and improved processing efficiency. Using 7.4% the annual yield of ethanol of one hectare is 0.074 times 180,000 liters, equals 13,320 liters of ethanol. It should be stipulated at this point that also other technologies are available, such as cavitation technology, which can improve the theoretical efficiency to almost a 100%. Research and development is necessary.
Justification
Since an energy crisis was made aware at the end of the year 2006, the price of fossil oil increased consistenly and finally had reached an alarming US$140/barrel level. The phenomena forced all government as well as industrialist to develop alternative energy sources. Bio-energy is one of the promising as an energy alternative for kerosene, premium and diesel fuel. However, most of the raw material for alternative energy compete and causes a negative price-hike of all staple food and feed stock supply, resulting in a shortage in the supply and demand curve on food and feed supply whereby effecting rice increase of those necessary commodities. For example, sugar cane, corn and cassava for ethanol industry, so in the long term, the policy has a potential to generate another problem. These numbers indicate that, for sustainability perspective, we need resources with minimum or non competitive effect to food as well as feed. Sugar rich sap from palm species has been known long time ago as a source of sugar for the people; namely coconut, brown sugar palm and palmyra palm. However, all of them grew as wild plants or limited cultivation with traditional technologies as well as for harvesting and processing. Nipah Palm is one of the more promising palm for ethanol production; (a)the original ecosystem, in the tidal swampy land, so limited competition with other crops or utilization, (b)the population density (abundance) and compact in a relatively small area along empty rivers and large wetlands, (c) the slightest competition will effect with food or feed, (d) the habitat located in the less developed region with the limited income source for inhabitant, so high potential for poverty alleviation without environment problems.
Advantages
• Nipah palm produce 5-7 times more ethanol compare to other biofule plants. FirstFlower Nipah palm estate will produce 15,0000 – 20,000 litres ethanol per hectare. It is more productive compare to sugar cane that produce only 5,000 – 7,000 litres ethanol per hectare per year. An equivalent area planted in corn would only produce ethanol 2,000 litres per hectare per year.
• People don’t eat anything from nipah. Producing ethanol from nipah will not affect the global food supply. It is non-feed-stock ethanol biofuel resource.
• It’s free of deforestation. Nipah Palm grows freely and naturally without any human intervention. Nipah Palm has an auto-replanting mechanism; therefore it does not need to be cultivated as is with Jatropha, Arenga Palm and other agriculture products. Nipah Palm has a productive life span of 50 years or more.
• It conserve water resources. Its habitat are river banks and wetlands, where the trunk is submerged under water.
• It’s part of CO2 cycle. The leaf structure is the only species of its kind that absorb during the day large volume of photovoltaic and photosynthesis Carbon Dioxide (CO2). At the highest temperature of the day around 3pm; whereas normal hard wood trees would produce Oxygen (O2) through the leaves, Nipah traps the Carbon Dioxide (CO2) in the sugar-rich sap.
• Harvesting sugar-rich sap is easy and has no negative-complimentary relationship to other edible biofuels such as corn, palm oil, sugar cane, sugar beets, potatoes, onions, and even peanuts. (The sugar-rich sap from Nipah Palm is one of the very few natural biofuel source that is non-toxic and non-edible that produces ethanol) 13 Liters of sugar-rich Nipah Palm sap produces 1 Liter of Biofuel-ethanol(Bio-ethanol). The remaining 12 liters of residuals, on a scale of 20,000 Ha, produces one of the many by-products known as Captured liquid Carbon Dioxide (CO2) in excess of 100,000 MT (Metric Ton) annually and equal quantity of Bio-Organic Fertilizers. Basically, the Nipah Palm tree is superior in both cost and yield.
Financial Value of FirstFlower Nipah Ethanol Project
The current wholesale market price of high grade ethanol would be around 0.60 to 0.65 US$, which would give a gross value of one hectare of around 7500 US$ per hectare per year. At full efficiency costs of production are estimated to be 0.25-0.30 US$ per liter, start-off costs estimated at around 0.45 to 0.50 US$/liter. It should be appreciated that at this very moment prices of oil - and ethanol - are historically exceptionally low, and that some increase can be expected. More importantly even at the current price levels and start up efficiency, production of ethanol yields a gross return of around 0.10 US$ per liter equaling a ratio of almost 20%. At estimated full efficiency costs, assuming a conservative 0.30 US$ costs per liter, this ratio would double to 50%, excluding repayment of capital costs. It follows from the above that the financial value of 20,000 hectares of Nipah at full efficiency and capacity over a period of 20 years equals – at current market prices – 20 years times 20,000 hectares times 8560 US$ per hectare, is 3,463,200,000 or 3,46 billion US$ (appraisal by Lloyds Earle Panicker International Inc, report dated March 12th, 2010).
Financial Value of FirstFlower Nipah Sugar Project
Based on calculation and valuation that has been done by FMA Group (Financial Advisory), the sugar based valuation of 20,000 hectares of Nipah at full efficiency and capacity over a period of 20 years equals – at current market price – a Net Profit Value of US$ 575 million and a turnover value of US$ 6.871 billion.
