Indosat wins support from NYSE investors

JAKARTA (JP): The state-owned international telecommunications company, PT Indosat, received strong support from American investors during the first hour of its listing on the New York Stock Exchange (NYSE) yesterday morning (9 p.m. Jakarta time).

The price of the company's American Depository Shares (ADSs), each comprising 10 share units, was quoted at US$38, around 18 percent higher than the price base of $32.05, only an hour after their listing.

The first hour of Indosat's stock market debut on the NYSE was monitored by Minister of Finance Mar'ie Muhammad and other high ranking officials through a tele-video conference installed at the Indosat headquarters here.

The finance minister said Indosat's successful debut on the NYSE reflected the confidence of foreign investors towards the Indonesian economy.

"The listing of Indosat on the NYSE is a good beginning for the government's privatization program," he said.

Indosat, the first Indonesian company listed on the NYSE, will also float its shares on the Jakarta Stock Exchange (JSX) today.

Indosat sold around 7.75 percent of its 1.03 billion common stocks on the domestic market during a primary offering period early this month and another 27.25 percent in New York.

Indosat's shares, with a face value of Rp 500, were sold on the domestic market at Rp 7,000 (US$3.2) each, as compared to their NYSE price of $38 for each ADS.

The company's shares are likely also to receive strong support from the local market during its initial listing today on the impact of the company's significant gain on the NYSE.

The price earning ratio (PER) of Indosat shares on the domestic market reaches almost 26 times that of the company's net earning per share in 1993, as compared to between nine and 10 times for the other new listings and the between 17 and 20 times of old time bluechips.

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

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

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