At least 20 companies set to go public this year

JAKARTA (JP): At least 20 state and private companies, including five private banks, are set to float shares on the local stock markets this year.

The companies expect to raise around Rp 5 trillion (US$2.07 billion) in fresh funds from their initial public offerings (IPOs).

The five private banks are Bank Media, Bank Arya Panduarta, Bank Century Intervest Corporation (CIC), Bank Bahari, and Bank Artha Graha. The banks are expected to raise over Rp 200 billion from their IPOs.

Bank Media is scheduled to float shares worth Rp 40 billion in June while Bank Arya will sell 15 percent to 20 percent of its enlarged stocks to raise between Rp 60 billion and Rp 100 billion.

Sources said both Bank Arya and Bank CIC plan their initial public offerings for May, with PT Bhakti Investama as underwriter.

Bank Arya said it expected a 214 percent rise in the bank's net profit this year from Rp 32 billion in 1996.

CIC planned to sell at least 50 million shares, which was expected to raise its paid-up capital to Rp 100 billion this year from Rp 35 billion last year. CIC's assets rose by 48.5 percent to Rp 543.9 billion last year from Rp 366.2 billion in 1995.

Bank Bahari also plans to sell about 50 million shares this year with PT Trimegah Securindolestari as underwriter, said Trimegah's president Avi Y. Dwipayana.

Bank Bahari raised its paid-up capital by Rp 40 million last year to Rp 100 billion to improve its financial performance before going public.

The bank said the IPO proceeds would be used to increase its paid-up capital to Rp 150 billion.

Other private firms scheduled to go public this year include: PT Daya Sakti Unggul Corp to raise around Rp 47.5 billion, PT Gleneagles Hospital Corp. (Rp 140 billion), PT Surya Semesta Internusa (Rp 67.5 billion), PT Putra Surya Multidana (Rp 425 billion), PT Humpuss Sea (Rp 200 billion), PT Sempati Air (Rp 200 billion), PT Timor Distributor (to increase its paid-up capital by 20 percent), PT Eterindo Wahanatama (Rp 192 billion), PT Putra Sumber Utama Timber (Rp 160 billion) and PT Elnusa (Rp 200 billion).

State-owned firms set to enter the stock market include PT Krakatau Steel (to raise $600 million), PT Aneka Tambang (Rp 1.4 trillion) and PT Pelindo (Rp 2 trillion).

Vickers Ballas Tamara predicted a positive outlook for the country's stock market this year due to strong macroeconomic fundamentals.

It said the country's economy was expected to grow by 7 percent this year while inflation would drop to 7.2 percent.

The current account deficit was expected to continue widening to $8.1 billion this year but the deficit as a percentage of gross domestic product would fall to 3.4 percent in 1997 from 3.6 percent in 1995.

"The drop is still tolerable compared to 7.7 percent in Thailand and 3.7 percent in Malaysia," it said.

The securities company said the improving economic fundamentals would make the capital market more attractive for both share issuers and investors.

There were 16 new listings on the Jakarta Stock Exchange last year.

In the banking sector, Vickers forecasted that liquidity would remain abundant this year through the increase of rights issues.

According to Vickers, Rp 1.6 trillion was raised through rights issues by the banking sector last year.

"Despite the deteriorating market within the last year, the banking sector is improving its profitability this year," Vickers said.

The improvement is enhanced by a wider net interest margin from lower deposit rates because Bank Indonesia is likely to maintain its firm grip on the monetary policy and set a similar loan growth constraint between 17 percent and 18 percent this year, the firm said. (02)