Darya-Varia offering new shares

JAKARTA (JP): The pharmaceutical company PT Darya-Varia Laboratoria is offering 10 million new common shares to the public to raise funds to finance its expansion programs.

The selling price of the offered shares, which will represent 32 percent of its total common stocks, will be set at about Rp 5,800 (US$2.66) to Rp 6,200 each, Darya-Varia's president, Wim Kolona, told reporters after a presentation for securities analysts and brokers at the Grand Hyatt hotel yesterday.

He said that PT Wardley James Capel Indonesia acts as the managing underwriter of the company's share issuance.

"We expect that the proceedings generated from the share issuance will reach some Rp 62 billion," he said, adding that the primary offering of the shares will be held on Oct. 17 through Oct. 19 at the Jakarta Stock Exchange.

He said that 20.7 percent of the proceedings will be used to purchase new machinery to support its business expansion.

"And 23.1 percent of the funds will be used to acquire land, on which a modern centralized warehousing and distribution facility will be established," Kolona said.

He said 11.8 percent of the generated funds will be used to repay bridging loans from Bank Central Asia, 17.4 percent to acquire 100 percent of the shares of PT Dupa Pharmaceutical Laboratories, 17 percent to settle existing loan and leasing obligations and the remaining 10 percent to increase the company's working capital.

Darya-Varia, which is controlled by business tycoon Sudwidkatmono, produces contact lens, ophthalmic drugs, sugar coated tablets, hard and soft capsules, medical syrups, medicated gauze, creams and ointments.

The company is 69.12 percent owned by PT Indocom Mutiara Pertiwi, 14.27 percent by PT Jasatama Lestari Mukti, 12.06 percent by Djajus Adisaputro, 3.58 percent by Robianto and 0.97 by employees. (fhp)