PSN to raise $67m from share listing on Nasdaq<\/p>\n
JAKARTA (JP): PT Pasifik Satelit Nusantara (PSN), the
\ncountry's first private satellite and telecommunications
\noperator, expects to raise US$67 million from floating 10.95
\nmillion shares on the Nasdaq Capital Market in the United States.<\/p>\n
The company's president, Adi R. Adiwoso, said yesterday that
\nthe American Depository Receipts of the Bank of New York will
\nhave its initial public offering and begin trading today on
\nNasdaq in relation to the issuance and sale of the PSN shares.<\/p>\n
The PSN shares will be sold in 3.65 million American
\nDepositary Shares (ADSs), covering up over-allotments to
\n1,642,500 shares at a selling price of US$20 per ADS.<\/p>\n
\"PSN's entry into Nasdaq provides brokers and others with
\nimmediate access to the best bid and ask prices and other
\ninformation about the company's shares throughout the trading
\nday,\" Adi said.<\/p>\n
He said the company estimated that the public offering would
\ngenerate gross proceeds of about $73 million, while expenses
\nwould cost about $6 million.<\/p>\n
The company selected Donaldson, Lufkin & Jenrette as lead
\nunderwriter and Morgan Stanley as co-underwriter.<\/p>\n
Adi said his company could not float its shares on domestic
\nstock exchanges as PSN would fail to meet the requirements from
\nthe country's Capital Market Supervisory Agency (Bappepam).<\/p>\n
Under the United States' Generally Accepted Accounting
\nPrinciples, the company gained profit in 1993 but suffered losses
\nin 1994 and 1995. In the first three months of 1996, the company
\nsuffered losses of $803 million.<\/p>\n
PSN, set up in 1991, is a joint venture between overseas and
\ndomestic firms. The company's shareholders are state-owned PT
\nTelkom, PT Elektrindo Nusantara, a subsidiary of the Bimantara
\nGroup, PT Skaisnetindo Teknotama, a company owned by Iskandar
\nAlisjahbana, PT Primaupaya Lintaswara, a company owned by Adi and
\nHughes Space and Communications Inc. of the United States,
\nTelesat Canada and other parties.<\/p>\n
PSN provides satellite-based communication services within the
\nAsia-Pacific region using 44 transponders in four separate
\nsatellites, including 12 in the Palapa-C1 and the Palapa-C2
\nsatellites and 10 in the Palapa-B2P of Indonesia and eight in the
\nMabuhay satellites of the Philippines.<\/p>\n
Joining with Philippines Long Distance Telephone Co. of the
\nPhilippines and Jasmine International Public Co. Ltd. of
\nThailand, PSN has set up PT Asia Cellular Satellite System
\n(ACeS), a Jakarta-based telecommunications firm which will offer
\nmobile-satellite-based cellular telecommunications.<\/p>\n
\"Of the total $67 million in earnings from the initial public
\noffering, we will use $45 million for equity contribution to
\nACeS,\" Adi said.<\/p>\n
ACeS has selected the American defense contractor Lockheed
\nMartin Corporation as the spacecraft manufacturer, the Russian
\nProton rocket for the launch of its Garuda satellite and Ericsson
\nof the Swedish Telecom group to manufacture the telephone
\nhandsets.<\/p>\n
The first Garuda satellite, weighing 4,400 kilograms, will be
\nplaced at a geo-stationary orbit.<\/p>\n
\"After the first Garuda in orbit, a second satellite will be
\nlaunched within the next 12 months,\" he said.<\/p>\n
ACeS's $1-billion project will allow any person with a hand-
\nheld device to communicate directly with another person carrying
\na similar device within the satellite coverage in Asia and,
\nthrough ground station gateways and normal public switch
\ntelephone networks, to any person with a cellular or fixed
\ntelephone anywhere in the world.<\/p>\n
The satellite's coverage will encompass India, Bangladesh,
\nMyanmar, China, South Korea, southern Japan, Hong Kong, Taiwan,
\nIndochina and the members of the Association of Southeast Asian
\nNations -- Brunei, Indonesia, Malaysia, the Philippines,
\nSingapore, Thailand and Vietnam. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/psn-to-raise-67m-from-share-listing-on-nasdaq-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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