Fortune Mate goes public

JAKARTA (JP): Shoes producer PT Fortune Mate Indonesia plans to sell 66 million new shares or about 20 percent of its enlarged stock through an initial public offering later this month.

The company said over the weekend that the shares would be sold during the offering period from May 29 to May 31 between Rp 500 and Rp 600 per each, or about 1.5 times of the book value per share.

The company expected to raise a fresh fund of about Rp 33 billion (US$4.23 million) from the IPO plan, in which about 65 percent of the total would be used to boost its working capital and other 35 percent to open two new production lines.

The new investment would increase production capacity from 12 million pairs of shoes currently to about 15 million pairs of shoes to meet higher orders from foreign buyers.

After the IPO, Fortune Mate will be 55.56 owned percent by Hong Kong-based company Yuh Fong Industrial Co.Ltd. and about 23.81 percent by PT Surya Mega Investindo, and the rest will be held by the investing public. (07)