Suparma expects to raise Rp 90b from public offering<\/p>\n
JAKARTA (JP): PT Suparma, a paper manufacturer based in
\nSurabaya, East Java, expects to receive around Rp 90 billion
\n(US$42.8 million) from its initial public offering next month.<\/p>\n
Company president Welly said here yesterday that around 40
\npercent of the public offering proceeds would be used to pay
\nlong-term debts to state-owned Bank Rakyat Indonesia (BRI), 40
\npercent to finance the purchase of new machines and another 20
\npercent for strengthening working capital.<\/p>\n
Welly said that Suparma, which produces printing and writing
\npaper for domestic and overseas markets, would sell 26 million
\ncommon shares or 30 percent of its enlarged shares.<\/p>\n
The stocks, with a face value of Rp 1,000, would be priced
\naround Rp 3,600 each, nine times the company's projected profit
\nper share in 1994.<\/p>\n
The public offering, underwritten by PT Gadjah Tunggal DBS
\nSecurities, will be launched late next month.<\/p>\n
Agus Projosasmito, the vice president of the underwriting
\ncompany, was enthusiastic that Suparma's public offering would be
\nsuccessful even though Indosat's public offering is to occur the
\nsame month.<\/p>\n
\"We still have a chance since Indosat's shares will be
\navailable during the first week of the month and Suparma's at the
\nend of the month,\" he said.<\/p>\n
Indosat, the state-owned international telecommunications
\ncompany, will sell around 10 percent of its stocks on the
\ndomestic market and 25 percent overseas.<\/p>\n
Drying up<\/p>\n
The Indosat shares, which will be cross listed on the Jakarta
\nand New York stock exchanges, have been long awaited by both
\nforeign and local investors. Their shares are in high demand and
\nthus it would not be surprising if Indosat's public offering
\ndried up investors's funds on the domestic market, he said.<\/p>\n
\"This is why Suparma will carry out its overseas presentation
\nin Singapore and Hong Kong rather than in New York,\" he said.<\/p>\n
He believed that Indosat's public offering would be
\noversubscribed, allowing investors to have more funds to buy
\nSuparma's stocks.<\/p>\n
Investors will receive refunds if their order is not entirely
\nmet.<\/p>\n
Agus said that the price of Suparma's shares, which will be
\nset at Rp 3,300 or 3,600, are relatively cheaper than those of
\nsimilar shares now already traded on the exchange.<\/p>\n
\"Under that pricing scenario, Suparma's price earning ratio
\n(PER) will be 8.92 or 9.71 times of the company's 1994 projected
\nprofits, he said. \"PERs of similar companies, which are already
\nlisted on the market, have already reached 20 and 21 times their
\n1994 projected earnings.\"<\/p>\n
Suparma's sales rose 65 percent to Rp 75.48 billion last year
\nfrom Rp 45.97 billion in 1992. Its net profits increased by 76
\npercent to Rp 10.84 billion from Rp 6.15 billion.(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/suparma-expects-to-raise-rp-90b-from-public-offering-1447893297",
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