Indosat wins support from NYSE investors
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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