Alfa plans to go public

JAKARTA (JP): PT Alfa Retailindo, a trading arm of the Sampoerna Group, announced on Thursday a plan to offer shares to the public.

The company said in a statement that it would offer 100 million shares with a nominal price of Rp 500 from Dec. 6 to Dec. 9.

The company said it would use 67 percent of the proceeds from the public offering to open new stores and install new technology. The remaining 33 percent will be used to strengthen its working capital.

It said its business strategy was earning profit by selling goods with a small margin but in large volumes.

It said it was different from foreign retailers in the country, as it could maintain a low operating cost amid the monetary crisis because it did not have any expatriates on its work force.

Established in 1989, Alfa now operates 20 discount stores in 14 cities and eight wholesale stores in eight cities in the country.

It is 99 percent owned by Sumber Alfaria Trijaya and 1 percent owned by Panamas, both of which are subsidiaries of Sampoerna.(jsk)