Plastics firm to sell shares to the public

JAKARTA (JP): A major manufacturer of plastic and aluminum household utensils, PT Langgeng Makmur, will sell 18 million shares to the public in August.

Frank. T. Supit, President of PT Sigma Batara, the lead underwriter, told reporters in Surabaya over the weekend that the company expected to raise Rp 70 billion (US$32 million) from the share offering.

Langgeng Makmur will use 70 percent of the fresh funds for plant expansions and the rest for capital restructuring, Supit added.

Each share will be offered at Rp 3,600 during the initial public offering.

Langgeng Makmur runs two plants, one in Sidoardjo regency, East Java, and another in Tangerang, West Java, producing 20,000 tons of plastic and aluminum appliances yearly.

"We export only 10 percent of our production because the domestic market demand has been increasing steadily," the company's chief director, Hidayat Alim said.

Hidayat was further quoted by Antara as saying he expects a Rp 13 billion net profit in 1994, or three times as large as the Rp 4.3 billion in 1993.

But a securities analyst in Surabaya, Hasan Jeffry, was doubtful about the projected profit in view of the keen competition on the plastic good market. (17)