Citatah to be first company to go public this year

Citatah to be first company to go public this year

JAKARTA (JP): PT Citatah, a marble producer, said yesterday
that it will offer 44 million shares or 35 percent of its
enlarged capital to the public to raise funds of about Rp 110
billion (US$46.8 million).

"The tentative schedule for the public offering is May 28 to
30 and the listing date will be June 26. So, Citatah will become
the first company to be listed on the Jakarta Stock Exchange
(JSX) this year," a director of PT Lippo Securities, Kelvin Lee,
announced yesterday.

Lippo Securities has been appointed as lead underwriter of the
share issue.

Kelvin said that the share price during the initial offering
period will range from Rp 2,200 to Rp 2,500, with a maximum price
earning ratio of 11 times.

"Based on responses we got during our recent seven-day
road shows abroad, we are optimistic that the offering will be
oversubscribed," he added.

Lippo Securities, according to Kelvin, will be backed up by 40
other underwriters which have applied to manage the offering.

Citatah's president, Taufik Johannes, said that 50 percent of
the public offering proceeds will be used to finance the
company's production expansion plan, 20 percent to strengthen its
working capital and the remaining 30 percent to repay debts.

"Our debts to banks now reach Rp 31 billion. So it will become
zero after going public," finance director Surya Paramita said.

Surya denied the speculation that the lenders might have
planned to convert its debt to equity after the initial public
offering.

"We got loans from banks, not from the founders, and we will
repay the debts totally," he noted.

Kelvin also explained that Citatah's net sale revenues
increased from Rp 20 billion in 1993 to Rp 30 billion in 1994 and
to Rp 34 billion last year, while its net profits rose from Rp
2.5 billion to Rp 4.9 billion and to Rp 5.6 billion.

Citatah now operates four marble mines in Citatah and
Sukabumi, both in West Java, and in Maros and Pangkep, both in
South Sulawesi.

Taufik said that the company will expand its production
capacity by 40 percent.

The first expansion in West Java is expected to begin
commercial production in January 1997, with a monthly production
capacity of 25,000 square meters. The second expansion is for its
units in South Sulawesi, to be effective in July 1997, with an
additional monthly production capacity of 40,000 square meters.

Taufik said that since February, Citatah's production capacity
has been recorded at 150,000 square meters per month after the
company acquired PT Kuali Indah Ekamaju Makmur, which operated in
South Sulawesi.

He also said that Citatah will build a new plant in Karawang,
West Java, which will focus on the production of higher margin
"special products," based on job orders. (alo)