DSTP offering shares to public without listing

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)