Bukaka expands core business

Bukaka expands core business

JAKARTA (JP): PT Bukaka Teknik Utama will use 50 percent of the Rp 128 billion (US$58.21 million) fund it generated last month from share sales to the public for the expansion of its core business, says a company director, H. Suratman.

Bukaka, a major company dealing with the engineering and manufacturing of infrastructure-related products, last month offered 40 million new common shares, amounting to 28.3 percent of its total shares, to the public at Rp 3,200 apiece. PT Lippo Securities acted as underwriter of its share issuance.

"Some Rp 64 billion of the proceeds will be used to strengthen our business of the engineering and the manufacturing of infrastructure, energy and telecommunication-related products, and Rp 51.2 billion to repay debts to Bank Dagang Negara, while the remaining Rp 12.8 billion will be used to increase our working capital," Suratman told reporters on Saturday.

The company, established in 1978, will list its shares on the Jakarta and Surabaya Stock Exchanges today.

Bukaka's corporate secretary, Suharso Monoarta, said that after the public offering, the company is committed to expanding its business into the production of power generation plants and electricity distribution facilities.

He said Bukaka's shares were oversubscribed by some 30 percent due to the prospect of the power generation business in the country.

Suharso said that Bukaka, whose products include asphalt mixers, rice milling equipment, oil pumping units, storage tanks, vacuum tank trucks, trailers, belt conveyers, ship loading and unloading equipment, steel towers, runway sweepers, aircraft refuelers and telescopic passenger boarding bridges, recorded an unaudited after-tax profit of Rp 15.7 billion last year, as compared to the Rp 9.1 billion gained in 1993 and Rp 4.5 billion in 1992.

He noted that the company's sales were estimated to increase to Rp 170 billion last year from Rp 151 billion in 1993 and Rp 100.8 billion in 1992.(fhp)