Panasia plans to float 50 million shares

JAKARTA (JP): Polyester producer PT Panasia Filament Inti will float 50 million shares, or 20 percent of its enlarged capital, to raise Rp 32.5 billion (US$13.54 million) in fresh funds.

The company said Wednesday it would list its shares, each with a par value of Rp 500, on the Jakarta and Surabaya Stock Exchanges on July 20.

Trimegah Securities, the lead underwriter of the initial public offering, said Panasia Filament shares were expected to be Rp 650 with a price earning ratio (PER) of between 4.9 and 6.7.

Trimegah said the company's PER was lower than the average textile industry PER on the market.

"The average textile industry PER is 7," Trimegah said.

Panasia Filament commissioner and PT Panasia Indosyntec finance director Theo Prastawa said that about 70 percent of the public float's proceeds would be used to expand production.

"The remaining 30 percent will be used to increase the company's working capital," he said.

Theo said the company expected net sales of Rp 200 billion in 1997, up from Rp 119 billion in 1996.

"Net profit is expected to increase to Rp 32.8 billion in 1997," he said.

Last year the company made a net profit of Rp 25.7 billion.

PT Panasia Filament Inti is in Bandung, West Java. It is a subsidiary of publicly listed PT Panasia Indosyntec.

Theo said the company also was building a worsted plant in Bandung with total investment of about US$20 million.

He said the plant was being built to make 7.5 million yards a year. It should be finished later this year. (09)