Mitra to go public with 30m shares

JAKARTA (JP): The transportation firm PT Mitra Rajasa will sell 30 million new shares to the public later this month to raise more than Rp 40 billion (US$17.24 million) to expand its business.

The company's president, Beni Prananto, said here yesterday that the nominal value of the new shares would be Rp 500. Shares will be sold to the public at the price of between Rp 900 and Rp 1,400, with a price earning ratio of between six and 10 times.

Beni said that the new shares would account for 26.3 percent of its total shares, which will amount to 114 million after the initial public offering later this month.

He said that 85 percent of the proceeds from the public offering, which is underwritten by Trimegah Securities, would be used to buy new buses and trucks and to improve the company's transportation fleet.

He added that 8 percent of the proceeds would be used to raise Mitra's stake in its subsidiaries, PT Continental Megah Express and PT Inti Continental. The other 7 percent will be used to repay its loans.

The new shares will be listed on the Jakarta Stock Exchange later next month.

Beni said that his company, which was started 17 years ago, has grown an average of 20 percent per year during the last five years.

Last year, the company's net profit was Rp 8.78 billion with total sales of Rp 39.37 billion. This year the company's net profit is expected to increase by 14 percent, to Rp 10 billion, while total sales are expected to reach more than Rp 50 billion. (bnt)