Alfa plans to go public

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)