Miwon offers 25 million new shares to public

JAKARTA (JP): PT Miwon Indonesia, an Indonesian-Korean joint venture, which produces seasoning, will offer 25 million new shares to the public next month to raise funds for its expansion program.

A company director, Bhakti Salim, said in a presentation yesterday that the shares, which will account for 29.41 percent of its enlarged stocks, will have a nominal value of Rp 500 (2.27 U.S. cent) each.

The shares will be offered to the public in September and listed on the Jakarta Stock Exchange the following month.

PT Sun Hung Kai Securities Indonesia will be the lead underwriter of Miwon's public offering.

The public offering will change the ownership of existing shareholders, with the stake held by Kayo Salim declining to 0.71 percent (from 1.0 percent), PT Intiputra Fikasa to 13.41 percent (from 19 percent), Sewon Co.,Ltd. to 14.12 percent (from 20 percent) and Miwon Co.,Ltd. to 42.35 percent (from 60 percent). The remaining 29.41 percent will be held by the investing public.

The company's paid-up capital will rise from Rp 30 billion (US$13.2 million) to Rp 42.5 billion after the public offering.

"Forty-five percent of funds to be raised from the public offering will be used to strengthen Miwon Indonesia's capital restructure and to finance the expansion of its existing production capacity. 10 percent will finance the diversification of its business to the fishery, food and beverages industries, while the remaining 45 percent will be used to repay loans," Salim told prospective investors and reporters at the presentation.

Production

Miwon Indonesia, established in 1973, produces monosodium glutamate (MSG), dry glutamic acid, natural food condiment, flavored table salt, jelly powder and fishery products, such as fillet.

Salim claimed that the company has managed to control 30 percent of the MSG market in Indonesia.

He said its two main competitors, Ajinomoto and Sasa, also have a market share of 30 percent each.

According to Miwon Indonesia's balance sheet summery, its total assets increased by 23 percent to Rp 123 billion as of 1994, from Rp 99.9 billion as of 1993. The assets further rose to Rp 124.3 billion as of April.

Net sales, which also rose by 23 percent to Rp 105.1 billion in 1994, totaled Rp 35.1 billion in the Jan-April period.

Last year's net profit grew by 23 percent to Rp 4.1 billion and reached Rp 1.7 billion during the first four months of this year.

The company, which has assigned PT Jico Agung as its main distributor, established last year a subsidiary, Miwon Widjaja Vietnam Co. Ltd., in Vietnam as part of its expansion program.

Early this year, the company also opened a subsidiary, Miwon Shwethazin Co.,Ltd. in Myanmar as its trading arm in the country. (kod)