Aneka Tambang sets share price<\/p>\n
JAKARTA (JP): State-owned mining firm PT Aneka Tambang and its
\nunderwriters agreed yesterday to set the price of shares for the
\ncompany's initial public offering (IPO) early next month at
\nbetween Rp 1,400 and Rp 1,800 a share.<\/p>\n
The company's finance director, Ki Agus Umar Tochfa, said in a
\nstatement that the price range was based on the response from
\nboth local and foreign investors during road shows.<\/p>\n
"Looking at the positive response from domestic and overseas
\ninvestors during our road shows, we are optimistic that we can
\nget the best pricing," he said.<\/p>\n
He added that the fixed pricing would be decided by the
\ngovernment early next month.<\/p>\n
Aneka Tambang has appointed PT Danareksa Sekuritas, PT Bahana
\nSecurities and PT Pentasena Artha Sentosa as underwriters for its
\nIPO.<\/p>\n
The company will offer around 430.76 million shares to the
\npublic through the Jakarta and Surabaya stock exchanges.<\/p>\n
It said that about 73 percent of the proceeds from the share
\noffering would be used to develop a nickel plant in Pomalaa,
\nCentral Sulawesi, 9 percent to build a geothermal power plant for
\nthe Pomalaa nickel plant and the rest to refinance the company's
\nloans.<\/p>\n
Securities analysts in Jakarta said Aneka Tambang's IPO should
\nboost stock-trading activities in the market.<\/p>\n
"I think most investors are interested in Aneka Tambang after
\nseeing how nickel mining company Inco and tin mining PT Tambang
\nTimah performed well during this current market volatility," Edi
\nWidjoyo, a mining analyst with Mashill Jaya Securities, told The
\nJakarta Post.<\/p>\n
The share price of Inco almost quadrupled recently, closing at
\nRp 7,100 yesterday against a year-low of Rp 2,300 in late August
\nand a year-high of Rp 8,800 in late July.<\/p>\n
Tambang Timah, also listed in London, made strong gains in the
\ngloomy market to close at Rp 4,150 yesterday against a year-low
\nof Rp 3,000 in late July.<\/p>\n
"It is this factor which will boost Aneka Tambang shares.
\nBesides, Aneka Tambang has sound fundamentals, low debt and
\nearnings in dollars," Edi said.<\/p>\n
Tochfa said the sharp depreciation of the rupiah against the
\nU.S. dollar would become a windfall of profit for the company as
\nmost of its revenue was generated in dollars.<\/p>\n
"More than 90 percent of the company's revenue is in dollars
\nwhile most of our costs are in rupiah," Tochfa said.<\/p>\n
Aneka Tambang posted a net profit of Rp 24 billion in the
\nfirst half of this year, compared to Rp 22.6 billion in the
\ncorresponding period last year.<\/p>\n
The company expected a net profit of Rp 69 billion this year,
\nup from Rp 44.29 billion in 1996.<\/p>\n
Besides, Edi Widjojo said, Aneka Tambang's listing would be
\nfully supported by state-related institutional investors,
\nincluding pension funds.<\/p>\n
President Soeharto asked pension funds and state-owned firms
\nearlier this month to have a more active role in local stock
\nmarkets, which have been suffering from the currency turmoil.
\n(aly)<\/p>",
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