Heavy equipment distributor plans to sell shares
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)