DSTP offering shares to public without listing

JAKARTA (JP): PT Dua Satu Tiga Puluh (DSTP), a company set up by the government last February to finance a US$2 billion passenger jet project, called N-2130, is now offering shares to the public, but not listing on the capital market.

DSTP President Saadillah Mursjid said his company planned to raise about Rp 2.8 trillion ($1.19 billion) through the public offering until the year 2006, when the jet planes were ready for sale.

"This year alone we expect to raise about Rp 600 billion from the public," he said after he presented a statement of registration of the public share offering to the Capital Market Supervisory Agency (Bapepam) yesterday.

Mursjid was accompanied by former vice president Sudharmono in his capacity as a commissioner of DSTP.

He said the company's shareholders had approved its plan to sell 774,398 shares at the price of Rp 2.4 million ($1,021.28) and 400,000 split shares at Rp 5,500. The two shares have a nominal value of Rp 2.3 million and Rp 5,000, respectively.

At a first stage the shares would be sold only to Indonesian citizens and not foreigners.

He said the company would start a roadshow to promote the share sales on Feb. 17 and expected people in the regencies and districts to buy the shares.

Saadilah noted his company's public offering was special because it was made without listing on the Jakarta and Surabaya Stock Exchanges and had no underwriter.

He said his company had yet to decide on the mechanism of the share trading between investors.

Yozua of Makes and Partner Law Firm said such public offering was not against the prevailing regulation. "This is unique, but we have seen this done by the daily Republika," he said.

Saadilah is optimistic the offering will be a success even though the company may only be able to pay dividends after 10 years.

He said DSTP had to sell at least 326 jetliners to breakeven but he was optimistic this could be achieved in the year 2013. About half the sales are expected to be made to domestic airliners.

IPTN's President B.J. Habibie, also the minister of research and technology, estimated the world would need some 3,200 units of 100-to-130-seater passenger planes between the 2005 and 2025.

The N-2130, which is the second airplane to be designed and engineered entirely in Indonesia, is scheduled to undergo its maiden flight in 2002 and enter the market by 2005. It is able to carry between 100 and 130 passengers and has a maximum speed of 900 kilometers an hour.

The first locally designed airplane, the N-250 turboprop passenger plane, had its maiden flight in August 1995.

Habibie is optimistic the N-2130 will meet about 25 percent of the world demand for aircraft of its class because only three other foreign aircraft makers - Airbus, Boeing and McDonnel Douglass -- produce similar models.

DSTP was set up by President Soeharto last February with an equity capital of $400 million and 25 employees.

The company and the Bandung-based state-owned aircraft manufacturer PT Industri Pesawat Terbang Nusantara (IPTN) last October signed a financing agreement for the production of Indonesia's first passenger jet.

Under the agreement, DSTP will provide $2 billion for IPTN to design, develop and produce two types of N2130 passenger jets and obtain at least three international certifications for the aircraft, including from the U.S. and Japan.

Saadilah said after the N-2130 was sold, DSTP would get a royalty from sales; its amount had yet to be negotiated with IPTN. (bnt)