Indofood to issue 21 million shares
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)