Heavy equipment distributor plans to sell shares

JAKARTA (JP): PT Hexindo Adiperkasa, a distributor of heavy equipment under the Hitachi brand, plans to sell around 25 percent of its 40 million shares to the public in the near future, the company's president said yesterday.

Rustam Effendi said after a ceremony for the opening of its new office here that his company submitted an application for the share sales to the Capital Market Supervisory Agency (Bapepam) last month.

"We expect to launch the initial public offering of our shares in the middle of November," he told The Jakarta Post.

Hexindo, set up in 1988 with a 93-percent stake held by PT Hexindo Adiperwira and the remaining shares by a number of individuals, will be the second heavy equipment company to go public after PT United Tractors.

Besides operating as distributor, Hexindo is also one of the domestic partners in PT Hitachi Construction Machinery Indonesia (HCMI), an Indonesian-Japanese joint venture manufacturing heavy equipment. HCMI is 65 percent owned by two Japanese companies, Hitachi Construction Machinery and Itochu Corporation.

Rustam said the proceeds from the initial public offering will be used mainly to expand the company's marketing networks through the establishment of offices and workshops at several strategic areas throughout Indonesia.

He said that the workshops will be aimed at improving the company's after-sales services to customers.

Rustam said his company posted an increase in sales from Rp 36.17 billion (US$16.6 billion) in 1991, to Rp 56.98 billion in 1992 and Rp 101.59 billion in 1993. In the first six months of this year, its sales reached Rp 63.15 billion.

The company's total assets amounted to Rp 109.36 billion as of June 1994.

According to Rustam, the heavy equipment sold by Hexindo includes hydraulic excavators, bulldozers, wheel loaders and motor graders.

He said that demand for heavy equipment in the country is estimated to increase to 3,800 units in 1994 from 2,600 units in 1993.(05)