Investors can't get enough of PT ALMI

JAKARTA (JP): PT Alumindo Light Metal Industry's (ALMI) initial public offering last month was well oversubscribed, ALMI's managing director said yesterday.

Alim Satria said the orders from domestic investors had exceeded their allocated number of shares by 10 times.

"The orders from foreign investors were four-times the number of shares allocated to them," he said after the shares were listed on the Jakarta and Surabaya stock exchanges.

Foreigners were allowed to buy up to 51 percent of the shares in the initial public offering.

Juanto Salim, the corporate finance manager of PT W.I. Carr Indonesia, the lead underwriter, said that ALMI shares had gained Rp 100 within a day of being listed to close at Rp 1,400, with 9.5 million of them changing hands on the Jakarta stock exchange.

The company sold 92.4 million shares for Rp 1,300 (55 U.S. cents) a share in the initial public offering.

"We received around Rp 130 billion ($55million) from the share issue which represented 30 percent of ALMI's total shares," Alim said.

He said 62 percent of the proceeds would be used to strengthen the company's capital structure to increase its production capacity for aluminum sheet and foil, which are used to make consumer durable goods like house-hold goods.

ALMI planned to increase its production capacity for aluminum sheets to 54,000 tons a year in 1997 and to 84,000 tons in 1998, from 42,000 tons.

Alim said the production capacity for aluminum foil would be increased to 10,800 tons a year in 1997 and to 13,200 tons in 1998, from 7,200 tons.

The remaining 38 percent of the proceeds would be used to finance the production-capacity expansion of ALMI's subsidiary, PT Maspion Stainless Steel, he said.

Alim said Maspion Stainless, acquired in 1995, would open the country's first cold-rolled stainless-steel sheet plant in October to produce 50,000 tons a year.

"We expect to make a net profit of around Rp 43 billion in 1997," he said, adding that his company's net profit for 1996 was estimated at about Rp 19.6 billion.

ALMI, a subsidiary of the Surabaya-based Maspion group, had Rp 407 billion worth of assets at the end of 1996, he said, adding that they were worth about Rp 243.8 billion in 1995.

ALMI is 33.48 percent owned by PT Husin Investama, 6.38 percent by PT Marindo Investama, 6.37 percent by PT Guna Investindo, 5.29 percent by PT Alim Investindo, 5.10 percent each by PT Mulindo Investama, PT Satria Investindo and PT Prakindo Investama and 2.55 percent by PT Anugerah Investindo. The investing public holds the remaining 30 percent. (04)