Asahimas plans to sell 86 million shares to public
Asahimas plans to sell 86 million shares to public
JAKARTA (JP): PT Asahimas Flat Glass Co. Ltd., a flat glass
and safety glass producer, will offer 86 million new shares or 20
percent of its enlarged capital to the public next month to raise
Rp 200 billion (US$87.9 million).
Company president Margono Djojosumarto said in a statement
that the shares will be listed on the Jakarta and Surabaya stock
exchanges in early November.
Acting as the lead manager of the public offering is PT
Indovest Securities.
Margono said Asahimas plans to use 74 percent of the funds to
be raised from the public offering to finance the expansion of
manufacturing facilities located in Jakarta and Surabaya, 21
percent to repay debts and 5 percent to increase working capital.
The company's expansion plan includes upgrading its flat glass
production facilities, constructing an additional laminated and
tempered glass production line and buying land on which to build
a safety glass plant and a warehouse.
The company, which was established in 1971 and began
commercial glass production in 1973, currently operates two
furnaces in Jakarta and one in Surabaya, with a combined
production capacity of 420,000 metric tons a year.
Its flat glass is used by the building industry while its
safety glass is supplied to the automobile industry.
Asahimas has a 60 percent share in the local flat glass market
and it is the largest supplier of safety glass to original
equipment manufacturers in Indonesia.
Sales growth increased steadily from Rp 186 billion in 1992 to
almost Rp 290 billion in 1994. Sales are expected to exceed Rp
400 billion this year, Margono said.
The company, which currently sells its products to customers
in over 20 countries, expects robust demand for flat and safety
glass in Indonesia due to the buoyant construction sector and
strong growth in automobile production.
Margono added that Indonesia's per-capita glass consumption of
1.97 kilograms per annum is still low compared with other Asian
countries.
Based on the company's 1994 estimates, China has a per-capita
glass consumption of 4.03 kilograms per annum, Malaysia 5.79
kilograms and Japan 11.85 kilograms.
Asahimas is a joint venture between Indonesia's Rodamas Co.
Ltd. and Asahi Glass of Japan, one of the world's largest glass
manufacturers. Each has a 50 percent stake in the company, which
will fall to 40 percent each after the public offering.
In conjunction with the public offering, the two parent
companies will together contribute one percent of the founder
shares to Indonesian cooperatives.(31)