Mon, 27 May 1996

Nine companies ready to go public soon

JAKARTA (JP): Chairman of the Capital Market Supervisory Agency (Bapepam) I Putu Gede Ary Suta confirmed over the weekend that at least nine companies are now ready to go public with estimated total offering funds of Rp 1.2 trillion (US$512 million).

Putu told journalists here on Saturday that the companies are now in the last stage of initial public offering (IPO) preparations, meaning they only need Bapepam's approval to execute their plans.

The nine potential issuers include PT Ramayana (a retail company), PT Pasar Raya (retail company), PT Citatah (marble producer), PT London Sumatra (plantation firm), PT Cahaya Kalbar (specialty fats producer), PT Surya Dumai (plywood manufacturer), PT Lippo Karawaci (property firm).

The other two are PT Kedaung Sejati and PT Fistra Agung.

Nine other companies have informally disclosed their intention to go public this year, he added.

Putu said that although there were no IPOs during the first four months of this year, 11 companies raised funds of up to Rp 3.4 trillion through the Jakarta Stock Exchange (JSX) by issuing rights shares, while another company issued bonds worth Rp 200 billion.

"There are 11 other companies preparing rights issues to raise funds of about Rp 3.2 trillion and three companies to issue bonds worth Rp 400 billion," he added.

Putu said that as of May 24, total funds raised from the JSX already reached Rp 47 trillion, of which Rp 8.7 trillion was raised between Jan. 1 and May 24.

Putu also said that as of May 24, Bapepam received registration statements of eight contract-based mutual funds, most of which are managed by domestic fund managers.

Bapepam, according to Putu, has licensed 55 local and joint- venture fund managers.

"We will also issue four new regulations on mutual funds next week, together with one regulation on financial reports of listed companies," he added.

The planned regulations are aimed to adjust the current accounting system with a new one adopted by the Indonesian Association of Accountants (IAI) based on international accounting standards.

He said that in its efforts to promote the operation of mutual funds, Bapepam, in cooperation with the Indonesian Association of Securities Companies (APEI), will provide a short course for mutual fund distribution agents.

"The participants of the course will be certified to act as salespersons of funds," he said.

Putu also informed that of the 206 brokerage firms licensed by Bapepam, 55 will become joint-venture companies.

Today, 39 joint venture securities companies are operating on the JSX and other two companies just got Bapepam's approval.

"We are now processing the applications of 14 local securities companies to set up joint ventures. So there will be 55 joint venture companies," Putu said.

Commenting on the increasing number of joint-venture securities companies in Indonesia, Putu said "We cannot discriminate between joint-ventures and locals. Our market is open to any party. But we hope that joint ventures also commit themselves to developing domestic inventors."

"They (joint venture companies) should also be ready to transfer their technology and to provide any kind of training needed to upgrade the capability of local personnel," he noted. (alo)