At least 20 companies set to go public this year
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)