Four companies to go ahead with IPO plans

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)