Household appliance producer to sell 18 million shares

JAKARTA (JP): PT Langgeng Makmur, a producer of household appliances, will offer 18 million shares or 30.51 percent of its total common stock to the public in August to raise Rp 70 billion (US$32.4 million) in fresh funds.

The company's president, Hidayat Alim, said in a presentation for securities analysts here Monday evening that the company will use 70 percent of the funds to finance its expansion program and the remainder to improve its working capital.

The company monthly produces 1,000 tons of plastic household appliances, 200 tons of aluminum wares and 200 tons of plastic woven bags. About 90 percent of its products are sold domestically and the remaining 10 percent are exported to Singapore, the United States, Australia and Europe.

Hidayat said the new shares, whose issuance is underwritten by PT Sigma Barata, will be listed on the Jakarta and Surabaya stock exchanges.

After the share issuance, Langgeng Makmur will be 69.43 percent owned by PT Langgeng Purnabahagia, 0.04 percent by Sandjojo Alim, 0.02 percent by Hidayat Alim and 30.51 percent by the investing public.

Langgeng Makmur, whose total assets increased from Rp 27.47 billion as of the end of 1992 to Rp 48.55 billion at the end of last year, recorded a substantial increase in sales from Rp 14.33 billion in 1992 to Rp 22.4 billion in 1993.

The sales will likely increase further to Rp 68.61 billion this year, Hidayat said.

He said the company's after-tax profit increased from Rp 629 million in 1992 to Rp 4.31 billion in 1993 and is projected to rise to Rp 12.93 billion this year.(yns)