Darya-Varia offering new shares

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)