Bimantara to float 200m shares<\/p>\n
JAKARTA (JP): PT Bimantara Citra, which is chaired by Bambang
\nTrihatmodjo, plans to float new shares on the Jakarta Stock
\nExchange (JSX) in the middle of this year.<\/p>\n
Bambang said yesterday that 200 million shares, representing
\n20 percent of the company's enlarged number of common shares,
\nwould be offered to the public in either June or July this year.<\/p>\n
\"However, if the market is bearish, we may postpone the
\ninitial public offering until the market recovers. But for sure,
\nwe will float them sometime this year,\" Bambang said at a halal
\nbi halal (ritual for asking forgiveness) gathering hosted by
\nBimantara.<\/p>\n
He said the public offering had been planned to coincide with
\nIndonesia's 50th anniversary in August.<\/p>\n
When asked, Bambang declined to reveal how much money the
\ncompany expects to raise through the public offering or what the
\nfunds will be used for, saying only that his company was still
\nstudying the matter.<\/p>\n
Bimantara Citra, a holding company of the Bimantara Group,
\ncontrols 26 subsidiaries whose business interests include
\ntransportation, telecommunications, property, automotive
\nassembling and broadcasting.<\/p>\n
\"The 26 companies are the selected ones, and therefore all of
\nthem have good performance,\" Bambang said.<\/p>\n
More than 100 companies operate under the umbrella of the
\nBimantara Group, which recorded total assets of more than US$2
\nbillion in 1993.<\/p>\n
Bambang said Bimantara Citra was also preparing initial public
\nofferings for its subsidiaries: PT Electrindo and PT Rajawali
\nCitra Televisi Indonesia (RCTI), the country's first private
\ntelevision station.<\/p>\n
Last year, Bimantara made plans to get its TV station listed
\non the JSX. But the effort was abandoned because the ministry of
\ninformation would not allow foreigners to own shares in the
\nbroadcasting company.<\/p>\n
\"For RCTI, we are ready to float shares anytime the government
\ngives its permission. For Electrindo, maybe next year,\" Bambang
\nsaid.<\/p>\n
He said that Makindo might act as the lead underwriter for
\nBimantara Citra's initial offering. \"We are still negotiating
\nwith Makindo.\"<\/p>\n
To promote the share issue, he said, Bimantara Citra will
\nconduct an international roadshow in May to present the company
\nto potential foreign investors. The roadshow, which is likely to
\nbe led by Bambang himself, will cover Hong Kong, Japan, Germany
\nand the United States.<\/p>\n
Explanations<\/p>\n
Meanwhile, a securities analyst from a foreign-owned brokerage
\nfirm who closely watches the Bimantara Group told The Jakarta
\nPost yesterday that most institutional foreign investors would
\ndemand elaborate explanations about the Group's long-term
\nstrategies in developing their core business.<\/p>\n
\"Bimantara's diversified subsidiaries represent a typical
\nphenomenon of big companies in emerging markets. The company,
\nhowever, must convince potential investors about their
\nfundamentals and long-term plans,\" he said.<\/p>\n
This might force the group to address questions about its
\npolitical connections, he said.<\/p>\n
The analyst said Bimantara's share issues had a \"good chance\"
\nof luring foreign buyers since the group intended to include
\n\"attractive\" subsidiaries in the listing, such as RCTI
\n(television), the Mercedes Benz-assembly plant and the group's
\ntelecommunications arms.<\/p>\n
\"Television and telecommunications are popular in the market
\nnow and everybody knows about Mercedes,\" he said.<\/p>\n
The analyst warned that foreign investors might examine
\nwhether state-controlled pension funds will be \"forced\" to buy
\nBimantara's shares in the case of a lukewarm market reaction.<\/p>\n
\"If this scenario takes place, it will create the impression
\nthat the government is only half-hearted about deregulating the
\neconomy, especially with regard to state-pension funds,\" he said.<\/p>\n
\"However, I wonder if Bimantara really needs the money from
\nthe issuance,\" he said.<\/p>\n
\"I know that a lot of analysts think that the listing plan is
\nnot based entirely on economic considerations,\" the analyst
\nadded. (rid\/hdj)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bimantara-to-float-200m-shares-1447893297",
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