Maharani set to allot Rp 226b for financing

JAKARTA (JP): Multifinance firm PT Maharani Intifinance will allocate about Rp 226 billion (US$94.16 million) by the end of the year to its consumer financing, factoring and leasing sections, its director said yesterday.

Stefanus Ginting said that consumer financing was expected to account for a large percentage of the company's business operations this year.

"Our consumer financing is expected to increase 40 percent this year," he said yesterday.

Ginting said the firm's total financing rose significantly to Rp 134 billion last year, from Rp 130 billion in 1995 and Rp 40 billion in 1994.

He said factoring last year accounted for Rp 114.6 billion or about 85 percent of the total financing, consumer financing Rp 15.3 billion or 11.48 percent and leasing Rp 4 billion.

Hendra H. Kustarjo, Panin Securities's director, the lead underwriter of the company's initial public offering, said Maharani planned to offer 58.8 million shares or 49 percent of its enlarged capital to the public, to raise Rp 30 billion next month.

He said the shares would have a par value of Rp 500.

"The shares will be sold to the public at Rp 600," he said.

He said the price earning ratio (PER), based on its 1997 profit estimate, was about 8.

He said the IPO would last from June 30 to July 2 and the shares would be listed on the Jakarta and Surabaya Stock Exchanges on July 16.

Ginting said 57.63 percent of the proceeds would be used to finance the company's expansion plan, 38.83 percent to refinance debts and 3.54 percent to open new branches.

Maharani, which is 50 percent owned by PT Maharani Paramitra (controlled by Mrs. Titiek Prabowo, President Soeharto's second daughter), 40 percent by PT Minsuco Multi Usaha, 7.5 percent by The Tje Min and 2.5 percent by Susanti Prawinoto, posted a net profit of Rp 1.25 billion in the first five months of 1997.

He said the company expected to book a total profit of about Rp 6 billion this year, up from Rp 1 billion in 1996.

Ginting said the company's assets increased from Rp 153.3 billion as of December 1996 to Rp 177.9 billion as of May 1997. (09)