Bimantara to go public in June

Bimantara to go public in June

JAKARTA (JP): PT Bimantara Citra, a holding company
established by President Soeharto's second son Bambang
Trihatmodjo in 1981 which currently has 26 subsidiaries, will
offer 200 million new shares to the public at the end of next
month.

The shares offered will account for 19.66 percent of the
company's enlarged capital.

Bambang, who is president of the company, told securities
analysts in a presentation here yesterday that the new shares,
each with a par value of Rp 500 (22.47 U.S. cents), will be sold
during an initial public offering period set, tentatively, for
June 26 through June 28.

"If the new shares are highly oversubscribed, the existing
shareholders will be ready to make divestment by selling their
shares to the public to meet the high demand," he said.

Bimantara is now 55 percent owned by Bambang, 20 percent by
his brother-in-law Indra Rukmana, 10 percent by M.T. Sapi'ie, 10
percent by Rosano Barack and five percent by Peter Gontha.

Bambang declined to reveal how much the shares would be
offered to the public for, saying Bimantara would have to wait
for approval from the Capital Market Supervisory Agency
(Bapepam).

Peter Gontha, a commissioner of the company, however,
indicated that the company was aiming to obtain nearly Rp 300
billion (134.8 million) from the offering of the 200 million new
shares.

Goenawan Yusuf, managing director of PT Makindo, the
underwriter of Bimantara's share issuance, said that the new
shares were likely be listed on the Jakarta Stock Exchange on
July 17.

Goenawan said that after the initial public offering, the
existing shareholders would hold only a total of 74.69 percent of
the enlarged number of shares -- 1.01 billion shares -- because
the holders of Bimantara's convertible bonds would receive a 5.65
percent stake.

Fund utilization

Bambang said Bimantara will use the funds to be generated from
the public offering for the expansion of its business activities
and the strengthening of its capital structure and financial
position.

Bimantara, which carried out a restructuring program in 1993,
has now reduced the number of its subsidiaries to 26 from 68 in
1992. The subsidiaries are grouped in seven core businesses --
media and broadcasting, hotels and property, financial services
and investment, telecommunications, infrastructure,
transportation and chemicals -- and employ about 10,000 people.

Of the 26 subsidiaries, one operates in media and
broadcasting, two in telecommunications, five in infrastructure,
five in transportation, four in the chemical industry, four in
the hotel industry and property and five in financial services
and investment.

A Bimantara executive said that 21 percent of the funds would
be used to increase the company's working capital, 30 percent to
finance the expansion of the cellular telephone business of its
subsidiary PT Elektrindo Nusantara, 13 percent to construct relay
stations for the Rajawali Citra Televisi Indonesia (RCTI)
television station, 11 percent for the expansion of its
automotive business, nine percent to improve the working capital
of subsidiaries operating in the insurance and multifinance
industries, eight percent to increase its chemical production
capacity and eight percent to construct fuel pipelines.

Bambang said Bimantara's consolidated after-tax profit had
increased by 6.3 percent to Rp 54.98 billion in 1994 from Rp
51.72 billion in 1993.

He said the public offering had been planned to coincide with
Indonesia's 50th anniversary in August.

Bambang said Bimantara Citra was also preparing initial public
offerings for its subsidiaries: PT Elektrindo and PT Rajawali
Citra Televisi Indonesia (RCTI), the country's first private
television station.

Last year, Bimantara made plans to get its TV station listed
on the JSX. But the effort was abandoned because the ministry of
information would not allow foreigners to own shares in the
broadcasting company.

"For RCTI, we are ready to float shares anytime the government
gives permission. For Elektrindo, maybe next year," Bambang said.

To promote the share issue, Bimantara Citra conducted an
international road show earlier this month to present the company
to potential foreign investors. (riz)