Baligraha's stock price set at Rp 500 per share

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)