Baligraha's stock price set at Rp 500 per share

JAKARTA (JP): PT Baligraha Medikatama, operator of the privately run Graha Medika Hospital, will sell its shares at a par value of Rp 500 (11 US cents) in its initial public offering in January.

Kevin Lee, the managing director of PT Lippo Securities -- the lead underwriter for Baligraha's initial public offering -- said yesterday that with such a low price, the stocks would be attractive to local investors.

"All we want is to set the price as low as possible," he said after the company's public presentation yesterday.

PT Baligraha Medikatama would offer 55 million shares, or 28.42 percent of its total enlarged capital. The company expected to raise Rp 27.5 billion (US$6.87 million) from the public.

Baligraha's president, Herman Ramli, said yesterday that 50 percent of the proceeds from the offering would be used to repay debts, while the remaining 50 percent would be used to buy new medical equipment for the hospital.

He said the company had a total of $4 million in debts as of August this year.

"But we have a reserve for a foreign exchange loss of about Rp 7 billion," he said.

PT Baligraha Medikatama will be the second hospital operator listed on the market after PT Siloam Gleneagles Health Care (SGHC), an affiliate of the widely diversified Lippo Group.

Lee said the shares of Baligraha would be sold to the public from Jan. 7 to Jan. 9 before being listed on the Jakarta and Surabaya Stock exchanges on Jan 21.

PT Pramudhya Barutama currently owns 50 percent of the company, with the remaining 50 percent owned by doctors and individuals.

Herman Ramli said that after the initial offering, Pramudhya would hold 35.79 percent of Baligraha, doctors and individuals 35.70 percent and the investing public 28.42 percent.

Graha Medika Hospital recorded Rp 41.96 billion ($10.49 million) in total revenues in 1996, up 18 percent from Rp 35.31 billion in 1995.

"As of August the company recorded a total revenue of Rp 27.8 billion," he said.

The company's net profit rose to Rp 3.8 billion last year from Rp 2.8 billion in 1995.

Its net profit from January to August this year totaled Rp 70 million.

The company, which had Rp 96 billion in total assets as of August, was set up in 1988 and started commercial operations in 1991.

The 223-bed Graha Medika Hospital, which currently employed 218 medical specialists and 29 general doctors, targeted middle and upper class consumers in the market, Herman Ramli said. (aly)