PT Eterindo to issue 170m shares<\/p>\n
JAKARTA (JP): Integrated chemical producer PT Eterina
\nWahanatama will list 170 million shares or 25 percent of its
\ncapital on the Jakarta and Surabaya stock exchanges in May.<\/p>\n
The company's president, Hadiran Sridaja, said yesterday the
\nshares would be issued at Rp 1,400 each and the company expected
\nto raise about Rp 240 billion (US$100 million).<\/p>\n
Hadiran said the money raised would be used to build new
\nplants and for working capital.<\/p>\n
About $50 million will be used to build PT Anugerahinti
\nGemanusa's plant, a polyvinyl alcohol and acetic acid producer.<\/p>\n
Ten million dollars will be working capital for synthetic
\nresins and plasticizer producer PT Eterindo Nusa Graha, $10
\nmillion will be used repay Buana Chemical Industries' (EBCI)
\ndebt, $10 million will be used to modernize EBCI's production
\nfacilities, $13 million will be working capital for EBCI and $2
\nmillion to repay EBCI's leasing facility.<\/p>\n
"Part of the proceeds will be used to finance the expansion
\nplan to make Eterindo play significant role in domestic and Asian
\nmarket," Hadiran said.<\/p>\n
PT Vickers Ballas Tamara will be the lead underwriter.<\/p>\n
PT Eterindo Wahanatama was established in 1992 by the Sridaja
\nfamily group's seven chemical companies: EBCI, PT Petrowidada, PT
\nAnugerahinti Gemanusa, PT Inti Mutiara Gasindo, PT Eterindo Nusa
\nGraha, PT Globechem Pacific Perkasa and PT Buana Slovindo.<\/p>\n
EBTI makes plasticizers, synthetic latex resins, unsaturated
\npolyester resin and alkyd and amino resin. It can make 100,000
\nmetric tons a year but capacity will be increased to 125,000 tons
\na year in 1998 when facilities will be modernized.<\/p>\n
PT Petrowidada makes phthalic anhydride and can make 70,000
\nmetric tons a year which will rise to 130,000 metric tons a year
\nin 1998.<\/p>\n
PT Eterindo Nusa Graha makes synthetic resin and plasticizers
\nand can make 60,000 metric tons a year.<\/p>\n
PT Anugerahinti Gemanusa makes polyvinyl alcohol and acetic
\nacid and can make 69,000 metric tons a year.<\/p>\n
PT Eterindo Wahantama's general manager, G. Wahyudi Harjo,
\nsaid the firm would invest between Rp 300 billion and Rp 350
\nbillion in the next three years.<\/p>\n
"Total investment required will be around Rp 1 trillion in the
\nnext three years," he said.<\/p>\n
Yudi said 70 percent would be spent financed by loans from
\noverseas financial institutions.<\/p>\n
"The Petrochemical industry is a capital intensive industry,"
\nhe said.<\/p>\n
PT Eterindo Wahanatama, which had total assets of Rp 650
\nbillion on December 31, 1996, posted a Rp 15.2 billion net profit
\nin 1995 which rose to Rp 26.4 billion in 1996.<\/p>\n
"The company expects to earn a Rp 93 billion net profit in
\n1997," he said.<\/p>\n
The company's net sales were Rp 254.2 billion in 1996, down
\nfrom Rp 331.1 billion in 1995.<\/p>\n
The drop in sales was because of a drop in product prices on
\nworld markets, he said.<\/p>\n
The company will promote its shares in Singapore, Hong Kong,
\nEdinburgh, London and Switzerland next week. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-eterindo-to-issue-170m-shares-1447893297",
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"sponsor": "Okusi Associates",
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