Tempo makes successful debut in stock market<\/p>\n
JAKARTA (JP): The initial public offering (IPO) of PT Tempo
\nInti Media, the first Indonesian print media company to float its
\nshares on the Jakarta Stock Exchange (JSX), has been
\noversubscribed by 81 percent.<\/p>\n
Vice president of Tempo's lead underwriter PT Trimegah
\nSecurities, Notariza Taher said on Thursday that the successful
\ndebut in the capital market partly resulted from the strong brand
\nimage of the company's product.<\/p>\n
\"The brand image (of Tempo) is quite strong, and it's the
\nfirst media company to go public,\" Notariza said at a media
\nconference.<\/p>\n
Tempo Inti Media, the publisher of the weekly Tempo magazine,
\nsold about 20 percent of its shares to the public during last
\nweek's IPO.<\/p>\n
Notariza said 50 percent of the shares offered during the IPO
\nwere purchased by institutions, 40 percent by individual
\ninvestors and 10 percent by Tempo's employees.<\/p>\n
Tempo sold 125 million shares during the IPO to raise Rp 37.5
\nbillion in capital.<\/p>\n
It plans to use 60 percent of the IPO proceeds as investments
\nfor the planned Tempo daily newspaper, 25 percent as debt
\npayments of its subsidiary printing company PT Temprint and 15
\npercent as working capital.<\/p>\n
Tempo initially planned to list its shares on the Jakarta
\nStock Exchange (JSX) by Dec. 15, but the late issuance of a
\npermit by the Capital Market Supervisory Agency (Bapepam), forced
\nthe company to delay the listing until Jan. 8, Notariza said.<\/p>\n
He expressed confidence that in the second week of January the
\nmarket would return to its normal pace after a long holiday, to
\nactively trade on Tempo shares.<\/p>\n
Tempo has said that listing on the JSX would be part of the
\ncompany's strategy to face the increasingly tight competition in
\nthe media sector.<\/p>\n
With its expansion plans, Tempo hoped to tap the potentials of
\nhigher advertising revenues from other media types.<\/p>\n
Advertisement spending this year was only 3.8 percent for
\nmagazines, as against 60.6 percent for televisions and 26 percent
\nfor the newspapers, according to Tempo.<\/p>\n
Notariza added that Tempo would focus on developing its
\nnewspaper business next year, as expanding to the television
\nsector was only a long term plan.<\/p>\n
He said other print media companies had expressed interest in
\nfollowing Tempo and floating their shares at the JSX.<\/p>\n
Notariza cited the daily Bisnis Indonesia and news website
\ndetik.com as among the media that were interested in joining
\nTempo on the stock market.<\/p>\n
\"After Tempo's public expose, we have been approached by
\nseveral media companies who wanted to know the feasibility and
\nlikelihood of their media going public,\" he continued.<\/p>\n
He said Tempo's performance on the JSX might become a
\nbarometer for other print media companies to join the company.<\/p>\n
Trimegah estimated the company to suffer losses of Rp 4.8
\nbillion this year, which according to the company was largely due
\nto extraordinary items. Last year it booked a net profit of Rp
\n1.8 billion.<\/p>\n
After the IPO and issuance of warrants, the public will own
\n21.8 percent of Tempo, PT Grafiti Pers and the Tempo Employee
\nFoundation each 13 percent, the Jaya Raya Foundation and the 21
\nJune 1994 Foundation each 19.4 percent. (bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tempo-makes-successful-debut-in-stock-market-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}