Heavy equipment distributor plans to sell shares<\/p>\n
JAKARTA (JP): PT Hexindo Adiperkasa, a distributor of heavy
\nequipment under the Hitachi brand, plans to sell around 25
\npercent of its 40 million shares to the public in the near
\nfuture, the company's president said yesterday.<\/p>\n
Rustam Effendi said after a ceremony for the opening of its
\nnew office here that his company submitted an application for the
\nshare sales to the Capital Market Supervisory Agency (Bapepam)
\nlast month.<\/p>\n
"We expect to launch the initial public offering of our shares
\nin the middle of November," he told The Jakarta Post.<\/p>\n
Hexindo, set up in 1988 with a 93-percent stake held by PT
\nHexindo Adiperwira and the remaining shares by a number of
\nindividuals, will be the second heavy equipment company to go
\npublic after PT United Tractors.<\/p>\n
Besides operating as distributor, Hexindo is also one of the
\ndomestic partners in PT Hitachi Construction Machinery Indonesia
\n(HCMI), an Indonesian-Japanese joint venture manufacturing heavy
\nequipment. HCMI is 65 percent owned by two Japanese companies,
\nHitachi Construction Machinery and Itochu Corporation.<\/p>\n
Rustam said the proceeds from the initial public offering will
\nbe used mainly to expand the company's marketing networks through
\nthe establishment of offices and workshops at several strategic
\nareas throughout Indonesia.<\/p>\n
He said that the workshops will be aimed at improving the
\ncompany's after-sales services to customers.<\/p>\n
Rustam said his company posted an increase in sales from Rp
\n36.17 billion (US$16.6 billion) in 1991, to Rp 56.98 billion in
\n1992 and Rp 101.59 billion in 1993. In the first six months of
\nthis year, its sales reached Rp 63.15 billion.<\/p>\n
The company's total assets amounted to Rp 109.36 billion as of
\nJune 1994.<\/p>\n
According to Rustam, the heavy equipment sold by Hexindo
\nincludes hydraulic excavators, bulldozers, wheel loaders and
\nmotor graders.<\/p>\n
He said that demand for heavy equipment in the country is
\nestimated to increase to 3,800 units in 1994 from 2,600 units in
\n1993.(05)<\/p>",
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