PT Karwell to offer 20m shares<\/p>\n
JAKARTA (JP): PT Karwell Indonesia, a textile producer, will
\noffer 20 million new shares that will account for 30.77 percent
\nof its total common stocks early next month, the company's
\nexecutives say.<\/p>\n
Frans Seda, the firm's chief commissioner, told reporters on
\nFriday that the shares, each with a nominal value of Rp 1,000,
\nwill be sold at a price between Rp 2,900 (US$1.3) and Rp 3,000
\neach.<\/p>\n
This means that the shares will have a price earning ratio of
\n7.2 times, he said.<\/p>\n
Karwell's president, Susanto, said that 64.8 percent of the
\nproceeds generated from the share offering will be used to
\nfinance the company's expansion plans.<\/p>\n
He explained that Karwell, which last year produced and
\nexported 659,405 dozen garments from its three subsidiaries, will
\nbuild a new plant in Bekasi, West Java, with an annual production
\ncapacity of 62,400 dozen.<\/p>\n
Susanto also said that the firm will expand the annual
\nproduction capacity of one of its subsidiaries to 978,000 dozen
\nfrom 319,000 dozen.<\/p>\n
The executive also said that 21.4 percent of the proceeds will
\nbe used to pay the company's debts while the remaining 13.8
\npercent will be allocated to increase its working capital.<\/p>\n
The expansion is required to enable the company, which thus
\nfar exports all of its products, to penetrate the local market.<\/p>\n
In the meantime, finance director Harijanto Witono said that
\nsales grew from Rp 57.7 billion in 1992 to Rp 76.9 in 1993 and
\nreached Rp 68.39 billion in this year's first semester.<\/p>\n
The net profit, he said, escalated from Rp 1.6 billion in 1992
\nto Rp 4.6 billion last year and reached Rp 5.8 billion in the
\nfirst semester of this year. (hdj)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-karwell-to-offer-20m-shares-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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