Nasio plans to sell shares

JAKARTA (JP): Despite the current financial meltdown, PT Nasio Dutamitra Electric (NDE), a manufacturer of electric and telecommunications cable and energy-saving light bulbs, plans to launch an initial public offering (IPO) this year.

Fifty million shares to be offered in early March will be listed on the Surabaya Stock Exchange at the end of the month, a company statement said yesterday.

The lead underwriter of the IPO will be PT Asjaya Indosurya Securities.

Sixty percent of the proceeds will be used to purchase new machinery, while the remainder will go toward strengthening the company's capital structure.

NDE's 1998 sales are projected to exceed Rp 104 billion (US$14.44 million) with a net profit of Rp 1.7 billion, compared to Rp 62.9 billion and Rp 2 million, respectively, in 1997.

The statement said the company would provide a dividend of between 21 percent and 25 percent if net profit exceeded Rp 5 billion.

With an anticipated strong domestic demand in cables and energy-saving light bulbs, the company is optimistic the target will be attained.

It currently manufactures 12 types of cables and three kinds of light bulbs. It has been awarded ISO 9002 international certification. (08)