Jeewon Jaya to sell 50% of its shares on JSX
JAKARTA (JP): PT Jeewon Jaya Indonesia, an export-oriented manufacturer of car-stereos, satellite video receivers, high- quality tuners and wire harnesses in Bekasi, West Java, will become the first Indonesian-Korean joint venture company to be listed on the Jakarta Stock Exchange (JSX).
Jeewon Jaya, which started up production in 1991, will hold a public expose of its primary share offering plan for securities brokers and analysts at the Shangri-La Hotel here this afternoon.
The company will offer 6.1 million shares, each with a par value of Rp 1,000, comprising 4.42 million new registered shares and 1.78 million registered shares owned by existing shareholders.
Jeewon Jaya's financial reports, which were audited by the Prasetio, Utomo & Co. accountancy firm, recorded steady, sharp increases in the company's net sales from Rp 7.45 billion (US$3.4 million) in 1991, Rp 27.03 billion in 1992 and Rp 31.37 billion in 1993. In the first half of 1994 it recorded Rp 27.03 billion in net sales.
The company's net profit rose from Rp 186 million in 1991, to Rp 899 million in 1992 and Rp 1.4 billion in 1993. It stood at Rp 1.95 billion for the first half of 1994.
According to Jeewon Jaya's President Inhyun Chung, 36 percent of the proceeds of the share offering will be used to expand production capacity, 43 percent to build new manufacturing facilities to diversify products, 16 percent to strengthen working capital and five percent to expand product research and development.
Ownership
The company is now 80 percent owned by Jeewon Industrial Co. Ltd., a a leading manufacturer of car stereos and satellite video receivers in South Korea and 20 percent by PT Tirta Sarana Mutiara.
After the public offering, scheduled to be completed next month, the investing public will own 50 percent of the company, Jeewon 40 percent and Tirta Sarana 10 percent.
Chung said Jeewon Jaya now exports all its products to Europe and the United States. About 90 percent of them are sold on a semi-original equipment manufacturing basis and the other 10 percent under its own brand names such as Corad and Cosat.
"But we have been making preparations to tap the domestic market as well. We are now negotiating with a Korean car manufacturer and a domestic car company in Jakarta about the use of our car stereos," Chung said.
The car stereo replacement demand in Indonesia is also expanding rapidly, he said.
Chung also sees a promising market for satellite video receivers in Indonesia because an increasing number of the local people are interested in watching overseas broadcasting programs.
Chung admitted that the product life of car stereos ranges from only one to two years.
"Therefore, we have been developing more than 10 models every year to meet the fast growing demand and to fulfill the varying needs of customers," Chung added.
Jeewon Jaya also plans to diversify its products into converters for cable-TV sets and several other electronic components for Jeewon Industrial Co. Ltd. in Korea. (vin)