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Sat, 23 Nov 1996

JP/PT Alter Abadi palns to go public next month

PT Alter Abadi palns to go public next month

JAKARTA (JP): Kaolin mining company PT Alter Abadi plans to offer 88.9 million shares to the public in December to raise Rp 666 billion (US$282 million).

Alter Abadi president Rachman Hakim said yesterday the shares, with a Rp 500 nominal value, would cost between Rp 750 and Rp 1,000 a share.

"The price will be around seven to ten times its 1997 projected earnings a share," he said.

Makindo will act as the lead underwriter for the public offering.

Makindo managing director Gunawan Jusuf said that, of the 88.9 million shares to be sold to the public, 26.3 million would be new shares and 62.5 million would be old shares.

In August the company issued convertible bonds worth $35 million and mandatory exchangeable bonds worth $10 million, he said.

The convertible bonds can be exchanged for new shares and the other bonds can be converted into founders' shares (old shares), he said.

Alter Abadi director Budianto Gunawan said 3 percent of the proceeds from the public offering would be used to support the company's expansion plan.

"Alter Abadi plans to increase its installed capacity to over 889,000 tons of processed kaolin per annum in 1998," he said.

The company has an installed capacity of 548,520 tons a year.

Budianto said 97 percent of the offering's proceeds would repay the company's short-term loans.

Alter Abadi, founded 1979, has four subsidiaries: PT Kaolin Belitung Utama, PT Nipsea Martapura, PT Kaolindo Sakti Perkasa and PT Nippindo Kaolin Abadi which were all acquired in 1993.

Gunawan said Alter Abadi's net profit had increased 304.1 percent between 1983 and 1994 to reach Rp 24.7 billion ($11.2 million). Its net profit rose to Rp 27.6 billion in 1995.

The company made a Rp 13.7 billion net profit in the first six months of this year. Its total assets were worth Rp 271.2 billion in June.

Alter Abadi is 98.4 percent owned by PT Hakimperkasa Interniaga and 1.6 percent by Rachman Hakim. After the offering, it will be 66.3 percent owned by PT Hakimperkasa Interniaga and 1.4 percent by Rachman Hakim. (04)