Makindo makes favorable capital market debut
Makindo makes favorable capital market debut
JAKARTA (JP): PT Makindo, one of the country's major
securities companies, made a successful capital market debut
yesterday, with its shares gaining 15 percent during the first
day of their listing on the Jakarta Stock Exchange (JSX).
The company's share price gained Rp 150 to close at Rp 1,125
from Rp 975 at the opening despite unfavorable conditions in the
overall market.
Makindo announced yesterday that it listed all 943 million of
its shares on the JSX and the Surabaya Stock Exchange (SSX)
yesterday.
About 500 million of the shares are owned by the founders
while the remainder are held by public shareholders.
Makindo, the third securities company listed on the JSX and
SSX after Lippo Securities and Bhakti Investama, offered 377
million shares, each with a par value of Rp 500 each, to the
public during its initial public offering (IPO) last month.
Makindo president Gunawan Yusuf said the company raised about
Rp 367.57 billion in fresh funds from the IPO.
About 70 percent of the IPO's proceeds would be used to
increase the company's working capital and the remaining 30
percent to support institutional investors and to improve the
company's information technology.
The company said in a statement yesterday that it posted an
unaudited net profit of Rp 80.3 billion in 1997, up 8.8 percent
from the previous projection of Rp 73.8 billion in early 1997.
The statement said the operating income contributed to about
75 percent of the company's net profit in 1997 and nonoperating
income accounted for the remaining 25 percent.
Makindo, set up in 1973, deals with stock underwriting and
selling, securities trading and brokerage, and private
placement.
Some stock analysts have said that any IPO in this bearish
market would only result in failure as most foreign investors,
which accounted for about 65 percent of total trading
transactions in the local stock market, had stayed away from the
market fearing possible corporate bankruptcies in the country due
to monetary crisis. (aly)