East Java poultry firm plans public share offering

JAKARTA (JP): PT Wonokoyo Haya, an East Java-based poultry company, will launch its public share offering next month to raise funds for its expansion projects, says the company's president.

Djoko Kusumo said yesterday that Wonokoyo, which is engaged in chicken breeding and feed production, will sell around 17 million new shares during the initial public offering period.

He said the new shares, with a par value of Rp 1,000 each, will be sold at between Rp 3,400 (US$1.50) and Rp 3,700 a piece during the offering period.

Around 55 percent of the proceeds expected from the initial public offering will be used to finance the purchase of new machinery and a new production site, 20 percent for the repayment of bank loans and another 25 percent to strengthen the company's capital structure.

Djoko said the new machinery is expected to significantly increase the production of Day-Old Chicks (DOCs) to 79.8 million heads next year from around 47.8 million this year.

He said the annual feed production will also be increased to 525,600 tons from 175,200 tons at present in anticipation of an increased feed demand, resulting from the rise in the DOC production.

Wonokoyo, which operates three breeding farms in Batu, Malang and Pasuruan, all in East Java, booked a net profit of Rp 1.93 billion in the first four months of this year, almost half of its net profit of Rp 4.41 billion in 1993.

The company's sale revenues totaled Rp 19.94 billion in the first four months of this year, as compared to Rp 50.53 billion in 1993 and Rp 40.44 billion in 1992.

Wonokoyo, one of at least five companies to launch their public offerings next month, will be listed on the Jakarta and Surabaya stock exchanges. (hen)