Car dealer to offer 28 million new shares

Car dealer to offer 28 million new shares

JAKARTA (JP): PT Tunas Ridean, an automotive vehicle dealer, plans to offer 28 million new shares, or 30.1 percent of its total common stocks, to the public next month to generate funds to finance its expansion program.

The new shares will, most probably, be listed in early May on the Jakarta Stock Exchange (JSX), Alwi Halim, the corporate manager for finance affairs of PT Jardine Fleming Nusantara, told reporters on Monday.

Jardine Fleming Nusantara is the underwriter of the share issuance.

"We will soon make a road show to a number of countries, including Hong Kong, Singapore, Britain and the United States, to promote the shares," Alwi said, the daily Republika reported yesterday.

Tunas Ridean's finance director, Erwin Setiawan, estimated that the shares may be offered at Rp 2,700 (US$1.22) apiece during a primary offering period.

Erwin said that the company will use 44 percent of the funds to be generated from the share sales to finance the opening of new offices for the sales of Toyota and Daihatsu cars, 14 percent to strengthen its working capital, 12 percent to repay part of its debts and 30 percent to increase its equity in its subsidiary PT Tunas Financindo Corporation.

Tunas Ridean is an authorized dealer for a wide range of cars, including BMW, Peugeot, Toyota and Daihatsu.

The company posted an after-tax profit of Rp 11 billion last year, up from Rp 4.6 billion in the previous year. (fhp)