Surya Dumai Industri to change IPO gains<\/p>\n
JAKARTA (JP): PT Surya Dumai Industri, a publicly listed
\ntimber company, announced Wednesday it would divert the use of 20
\npercent of its initial public offering (IPO) proceeds.<\/p>\n
The company said the IPO proceeds, which were initially
\nearmarked for the establishment of a new fiberboard plant, would
\nbe used to raise its stake in PT Perawang Lumber Industri,
\nanother timber company.<\/p>\n
It said the change should strengthen its future performance.<\/p>\n
The company is to hold a shareholders meeting on June 10 to
\nobtain approval for the measure.<\/p>\n
In June, last year, the company sold around 120 million
\nshares, or 30 percent of its enlarged capital, to the public to
\nraise Rp 78.8 billion (US$32.83 million).<\/p>\n
According to the prospectus issued before the IPO, 37 percent
\nof the proceeds were to be used to develop its industrial
\nestates, 20 percent to establish a medium-density fiberboard
\nmanufacturing plant, 27 percent to pay the company's loans and 16
\npercent to increase its working capital.<\/p>\n
The Riau-based Surya Dumai Industri has three timber estates,
\ncovering a total area of 97,720 hectares. They are managed by its
\nsubsidiaries PT Rimba Rokan Hulu, PT Perawang Sukses Industri and
\nPT Perawang Lumber Industri.<\/p>\n
The company also has six forestry concessions, totaling
\n734.470 hectares, managed by its subsidiaries PT Rokan Permai
\nTimber, PT Sri Buana Dumai, PT Kulim Company, PT Sejati Riau
\nTrading Co. I, PT Sejati Riau Trading Co. II and PT Expra Baru
\nUtama.<\/p>\n
The firm posted a net profit of Rp 44.09 billion in 1996, up
\nfrom Rp 28 billion in 1995. (09)<\/p>",
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