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)