Indosat launches public offering

JAKARTA (JP): The much-awaited public offering of the state- owned international telecommunications company PT Indosat starts today, with around 7.75 percent of its 517.75 billion common stocks to be sold at home and another 27.25 percent in New York.

Indosat's shares, with a face value of Rp 500 each, will be sold on the domestic market at Rp 7,000 (US$3.20) each during the offering period, which will close on Oct. 11.

The company, which specializes in international telecommunications services, will be cross-listed on Jakarta and New York stock exchanges. The share offering in the domestic market is underwritten by the state-owned Danareksa Sekuritas, while that for the overseas market is coordinated by Merrill Lynch, a New York-based securities firm.

The price of the shares for the overseas market will be fixed in U.S. dollars but its level has not yet been announced.

The public offering of Indosat, the first Indonesian company to be listed on the New York Stock Exchange, has been widely welcomed by both foreign and domestic investors.

Many securities analysts are worried that Indosat could absorb most of available funds in the market, thereby causing a setback in trading on the stock exchange.

Indosat will be the first listed company, whose shares have a par value of Rp 500 (22 U.S. cents) each. The par value of other listed companies' shares are all set at Rp 1,000 each.

The company recorded a turnover of around Rp 765.18 billion last year, an increase from Rp 690.97 billion in 1992. Its net profits increased to Rp 251.49 billion from Rp 237.27 billion.

The company's revenue for the first semester of this year reached Rp 431.86 billion, while its net earnings totaled around 127.55 billion.(hen)