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Tue, 06 Sep 1994

JP/Jeewon shares offer PER of nine times

Jeewon shares offer PER of nine times

JAKARTA (JP): PT Jeewon Jaya Indonesia, an export-oriented manufacturer of car stereos, satellite video receivers, high quality tuners and wire harnesses, will offer 6.1 million shares to the public, at an estimated price-earning ratio of around nine times, far below the official limit of 13 times.

PT Nomura Indonesia, which acts as the managing underwriter of the share issuance, told a press conference yesterday that the 6.1 million shares, each with a par value of Rp 1,000 (46 U.S. cents), comprising of 4.42 million new registered shares and 1.78 million registered shares owned by existing shareholders.

Jeewon Jaya, which is the first Indonesian-Korean joint venture company listed on Jakarta Stock Exchange, steadily increased its net sales from Rp 7.45 billion in 1991 to Rp 27.03 billion in 1992 and Rp 31.37 billion in 1993. In the first semester 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 in the first semester of 1994, according to its financial reports which were audited by Prasetio, Utomo & Co. public accountants.

The company exports all its exports to Europe and the United States but is geared up to tap the domestic market, especially for its car stereo and satellite video receivers.

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 the rest to expand product research and development.

The company is now 80 percent owned by Jeewon Industrial Co. Ltd., a leading manufacturer of car stereos and satellite 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. (05)