Pizza Hut Indonesia operator Sarimelati Kencana is planning an IPO to raise US$58.7 million.

Sarimelati Kencana runs 237 Pizza Hut Restaurants and 156 delivery outlets across 76 centres in Indonesia.

The company said, it will offer up to 604.375 million new shares each priced between Rp 1100-1350 (US 8-10 cents).

Sarimelati Kencana director Jeo Sasanto says two-thirds of the funds raised will be used to expand the Pizza Hut Indonesia network and to renovate existing stores.

The company has already commenced a book-building period which is scheduled to close on May 3, with the shares to start trading on May 23.