Indofood to issue 21 million shares
JAKARTA (JP): PT Indofood Sukses Makmur, a leading food manufacturer owned by Salim Group, will sell 21 million shares or 2.75 percent of its enlarged shares in June to finance an expansion project and to repay debts.
The company's president, Sudwikatmono, said here yesterday that 51 percent of the funds to be raised from the initial public offering will be allocated to build two instant noodle plants in Pontianak, West Kalimantan, and in Manado, North Sulawesi, and one seasoning plant in Medan, North Sumatra, while the remaining 49 percent will be used to repay its debts.
He did not specify the price of the shares because the company has yet to receive approval from the Capital Market Supervisory Agency (Bapepam).
He predicted the shares will likely offer a price earning ratio (PER) of 15 times.
The company's earning per share for 1994 is estimated at Rp 414.
The company expects to offer the new shares on June 6 to 8 and to list them on the Jakarta Stock Exchange (JSX) on July 4.
Eva Riyanti Hutapea, the company's director, said that after the share issuance the company will be 2.75 percent owned by the investing public, 50.1 by PT Indocement, a cement manufacturer partly owned by Salim Group, 46.4 percent by Global Mark International Ltd., a British Virgin Island-based company, which is also owned by the Salim family. The remaining shares are owned by a number of businessmen.
Bonds
Judiono Tosin, Indofood's former finance director who will officially resign in June, said that the shares owned by Global Mark will decrease because the holders of Global Mark's US$500 million worth mandatory exchangeable bonds (MEB), which are listed on the Luxembourg Stock Exchange, are entitled to convert their bonds into Indofood shares, which are owned by Global Mark.
Judiono said that such bond holders will be entitled to buy Indofood's shares at $3.6 each about eight months after the company receives a license for the share issuance from Bapepam.
The company's finance director, Sri Dewi Subijanto, said that Indofood's net revenues increased by 17 percent from Rp 946 billion in 1992 to Rp 1.1 trillion last year and its after-tax profit rose from Rp 138 billion to Rp 235 billion.
Instant noodles sales have generated Rp 916.7 billion or 83 percent of the company's revenues, she said.
She estimated that the company's net revenues in 1994 will likely reach Rp 1.5 trillion and the after-tax profit Rp 255 billion.
Presently, Indofood has 22 plants throughout Indonesia which employ around 14,800 workers.
The company, with its 150,000 distribution outlets in Indonesia, has acquired a 90-percent share of Indonesia's instant noodle market. It also has a 60-percent market share in baby foods and snacks and a six-percent share in seasonings.
The company has appointed PT Merincorp Securities as its lead underwriter to replace PT Usaha Bersama Securities. (03)