Indofarma to sell 29% stake to investors
Indofarma to sell 29% stake to investors
JAKARTA (JP): State-owned pharmaceutical company PT Indofarma
plans to sell an additional 29 percent of its shares to strategic
investors as part of the government's divestment program.
Indofarma president Gunawan Pranoto said here on Tuesday
investors from Singapore, the Netherlands and Australia had
expressed an interest in purchasing the government's stake in the
company.
He said the sale was part of the government's plan to divest
up to 49 percent of its stake in the company, which produces
over-the-counter pharmaceutical products and clinical equipment.
Since June 2000, the company has expanded into the baby food
market.
"We are awaiting further developments in the market. We hope
it (the market) improves," Gunawan said after witnessing the
listing of the company's shares on the Jakarta Stock Exchange
(JSX).
The pharmaceutical company became the first state-owned
company this year to sell its shares to the public. In an initial
public offering (IPO) late last month, in addition to selling new
shares, the company also sold about 20 percent of the
government's stake.
The company's capital market debut, however, did not receive a
warm response from the market. The company's shares gained Rp 5
to close the morning trade at Rp 255, from its IPO price of Rp
250. But in afternoon trade, the shares lost ground to close at
Rp 245.
Indofarma is one of eight state companies slated for
privatization this year. The government hopes to raise about Rp
6.5 trillion from the privatization program, to help finance the
2001 state budget deficit.
The director general of state enterprises, I Nyoman Tjager,
said he was optimistic this target could be achieved.
Indofarma booked a 26 percent increase in sales in 2000 to Rp
493.4 billion, from Rp 392 billion in 1999. This year, Indofarma
expects a 30-percent surge in sales.
It is also targeting Rp 130 billion in net profit this year,
or an 18 percent increase from Rp 110.3 billion in 2000.
The company was founded in 1918 under the name Pabrik Obat
Manggarai, before it was nationalized in 1950. Indofarma adopted
its current name in 1996. (03)