CMNP to raise Rp 500b from rights shares

JAKARTA (JP): Publicly listed toll road operator PT Citra Marga Nusaphala Persada (CMNP) will issue rights shares next month at a ratio of one to one to raise about Rp 500 billion (US$208.33 million).

Citra Marga's director Tito Sulistio said yesterday the company would issue one billion shares with a par value of Rp 500 a share.

"The new shares will be listed on the stock exchanges on July 7," he said after the company's annual shareholders' meeting.

Tito said proceeds from the public limited offering would finance a 36.6 kilometer road project in Surabaya.

The company is now building the toll road connecting Waru near the Surabaya airport of Juanda to Tanjung Perak seaport with a total investment of about Rp 1.3 trillion.

Construction started in March and is expected to be completed in 2001.

Citra Marga's chairwoman, Siti Hardijanti Rukmana -- who is popularly known as Mbak Tutut -- recently said that the road would be built in three stages.

The first stage covering 14.4 kilometers from Juanda to Waru is due to be completed in 1999. The second stage spanning 11.1 kilometers from Tanjung Perak to Kenjeran is to be completed in 2000. The third phase stretching 11.3 kilometers from Tanjung Perak to Tambak Oso is scheduled for completion in 2001.

Tito said Citra Marga had earlier issued rupiah bonds worth Rp 275 billion and Eurobonds valued at about Rp 300 billion to finance the project.

He said the company expected a 25 percent increase in net profit to Rp 154 billion in 1997, up from Rp 123.63 billion in 1996.

In the first quarter alone, the company booked a Rp 32 billion net profit.

The company's president Teddy Kharsadi said Citra Marga was considering expanding overseas to countries including Turkey, Mauritius, Poland, Hungary and Rumania.

"We will go to Eastern Europe later this month to look into business opportunities there," he said. (09/13)