Four companies to go ahead with IPO plans

JAKARTA (JP): At least four companies including PT Duta Kirana Finance, PT Aneka Tambang, PT Bhakti Investama and Bank Universal, will go ahead with their initial public offering (IPO) this year despite bearish local stock markets.

Finance company PT Duta Kirana announced yesterday it would offer 26 million shares or 40 percent of its total enlarged capital to the public in October.

The company expects to raise about Rp 13 billion (US$4.4 million) from its IPO.

PT Trimegah Securindo Lestari, the managing underwriter of the float, said the shares would be sold to the public from Oct. 9 to Oct. 13 for Rp 500 and Rp 600 each.

"The company plans to list its shares on the Surabaya Stock Exchange," Duta Kirana's director Sulistiawati said.

The state-owned company PT Aneka Tambang said yesterday it would also go public this year.

The company's president Dedy Aditya Sumanegara said 430.76 million shares would be sold to the public either in October or early November.

Also in the pipeline for a capital market debut is PT Bhakti Investama, a securities company controlled by President Soeharto's daughter Siti Hediati Prabowo.

The company will become Indonesia's second listed securities firm after PT Lippo Securities.

The banking arm of car maker PT Astra International, Bank Universal, will also go ahead with its plan to offer 300 million shares to raise Rp 150 billion (US$51.7 million).

SBC Warburg Indonesia will be the managing underwriter of the float.

Commenting on the IPO plans, Lippo Securities' vice president of research David P O'Neil told The Jakarta Post yesterday the companies would not have problems if they were committed to information transparency and a clear price scheme.

"Despite the current sluggish market, demand from value investors and fund managers for high value added stocks is still strong," he said.

Another analyst with a joint venture company said companies which planned to make their capital debut amid this currency turmoil were prepared to face a possible glut

"Besides... the underwriter knows what strategy to use to survive and win in the current volatile market," he said.

"They know the current market condition and they have taken strategies to overcome the situation," the analyst said.

O'Neil said companies with U.S. dollar revenue were not highly exposed to foreign exchange losses so remained attractive to investors as did companies which exported most of their products.

"The companies which meet these characteristics will not have problems with their capital market debut," David said. (aly)