Bimantara makes successful debut on capital market<\/p>\n
JAKARTA (JP): The widely diversified Bimantara Citra made a
\nsuccessful debut during its initial listing on the Jakarta Stock
\nExchange yesterday, with its price rising by 45 percent at close.<\/p>\n
The price of Bimantara shares rose sharply to Rp 1,850 (80
\nU.S. cents) during the first minute of yesterday's trading and
\nclosed at Rp 1,800, nearly 45 percent above Rp 1,250 set during
\nthe shares' initial offering period, with over 192.5 million
\nshares changing hands.<\/p>\n
Bambang Trihatmodjo, the business group's president, described
\nthe successful debut as an indication of the positive response of
\nthe public to his company, which is often criticized for its
\nclose link with the government.<\/p>\n
\"The price of Bimantara's shares already reached Rp 1,800
\nduring the first minute of the trading. It is very encouraging
\nand we pledge to do our best for the public,\" he said during a
\nnews briefing after the initial listing of the business group.<\/p>\n
Bimantara, which operates seven business lines, encompassing
\nradio and television broadcasting, telecommunications,
\ninfrastructure, automotive, chemical, hotel and property
\nindustries, has rapidly grown in the last five years. But most of
\nthe business group's successes have been linked to the close
\nrelationship between Bambang, the third child of President
\nSoeharto, and the government.<\/p>\n
Bimantara has denied such an allegation, saying that all its
\nbusiness practices are done through normal procedures.<\/p>\n
In yesterday's press briefing, Bambang expressed gratitude for
\nsuch criticism, saying that such an objection is good reflection
\nfor the business group's future.<\/p>\n
Securities brokers said that Makindo, Bimantara's lead
\nunderwriter, were seen actively supporting the business group's
\nshare prices yesterday, the first day of the listing.<\/p>\n
Peterus Tjuandi of PT KES Sinar Mas Securities said that
\nMakindo started the transaction of the Bimantara shares with a
\nbuy order of Rp 1,800, around 40 percent above the initial
\noffering price of Rp 1,250.<\/p>\n
He said that Makindo also intervened when the price fell to
\nbelow Rp 1,800.<\/p>\n
Roosano Barack, a director of Bimantara Group, said that the
\nencouraging performance of the Bimantara shares during the first
\nday of their trading was not caused by the low level of its
\noffering price. \"It is a matter of a strong demand,\" he said.<\/p>\n
Bimantara, during the public offering period last month, sold
\n200 million shares, around 20 percent of its enlarged shares, at
\nRp 1,250, with an estimated price earning ratio (PER) of 11.78
\ntimes, much lower than the average PER of around 18 times for the
\nshares traded on the stock market.<\/p>\n
The company's public offering was heavily oversubscribed with
\nforeign investors' orders reaching 45 times that of available
\nshares and those for local investors reaching 3.8 times.<\/p>\n
Roosana said that Bimantara's share prices were not as cheap
\nas many local securities estimated.<\/p>\n
\"Bimantara's initial offering price was expensive enough. Many
\nforeign analysts said that the price of the company's shares
\nshould have been ideally set at a level with PER of eight times,\"
\nhe said, dismissing the allegation that the oversubscription of
\nBimantara's shares were caused by its low price offering.<\/p>\n
He pledged that Bimantara would launch a second issue after
\ntwo years to maintain the price performance of the company.<\/p>\n
But when he was asked whether the group's founders would
\nimmediately sell their shares, Roosana said that there was no
\nplan for the next eight months, the minimum period that founders
\nshould retain their holdings.<\/p>\n
\"After that period, it is possible that Bambang would release
\nhis shares, especially if the price is good,\" he said. (hen)<\/p>",
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