PT DSTP to split its shares
JAKARTA (JP): PT Satu Dua Tiga Puluh (DSTP), a private company set up to finance Indonesia's first passenger jet project, is to split 400,000 of its two million shares, each with a nominal value of US$1,000 (Rp 2.36 million), into smaller shares with a Rp 5,000 par value.
"The share split is deemed necessary to enable the common people to buy DSTP's shares," company president Saadilah Mursjid, said yesterday.
The company had issued two million shares with a nominal value of US$1,000 each but only 391,466 shares had been sold so far, he said after meeting President Soeharto.
"This way more people especially people in the provinces, can afford DSTP's shares," Saadilah said.
In the meeting Saadilah was accompanied by the company's other executives, Rahardi Ramelan and Giri Suseno Hadihardjono.
President Soeharto, as a private citizen, set up the company in February last year to finance the construction of the 100- seater N-2130 jets by the state-owned aircraft manufacturer PT Industri Pesawat Terbang Nusantara (IPTN) in Bandung.
The project is estimated to cost US$2 billion.
Saadilah, also a minister/cabinet secretary, said the plan to issue the shares would be reported to the Capital Market Supervisory Agency, Bapepam, Thursday.
He expressed hopes that sales of the split shares could start soon after Idul Fitri.
DSTP is the first company to sell shares to the public, with Bapepam's consent, without listing on the Jakarta or Surabaya stock exchanges.
The split shares, however, have no voting rights.
People wanting shares with voting rights must buy the original shares with a par value of $1,000. Or they can accumulate the split shares to reach the equivalent of $1,000 and then change them for a common share.
"These split shares are like sight drafts, which are tradable. They are bearer's shares. So be careful in keeping them," Saadilah said.
He said the sale of the split shares would be promoted through society's formal and informal leaders not through officials because "this is a private company which has no direct links with the government."
Nevertheless, Saadilah said he and other company executives would tour the country to ask governors, regents and city mayors to support the sale.
In addition DSTP was also mulling over forming branches or using existing cooperatives or foundations in some areas to market the shares.
DSTP has been targeting rich people and state firms to buy its shares. State firms overseen by the industry and trade, forestry and transportations ministries have committed to buying $45 million of DSTP shares.
When the company was founded in February, Soeharto bought 44,950 priority shares worth Rp 103.38 billion, while nine tycoons bought a further 45,000 priority shares worth Rp 103.5 billion.
DSTP has given $6.9 million to IPTN to build the N-2130 prototype, which is expected to be ready in 2003. The 100-seater plane is the latest aircraft on IPTN's drawing board.
In 1995, IPTN celebrated the maiden flight of the twin propeller N-250, the first plane designed and built locally. The plane is undergoing tests before entering the market.
DSTP shareholders should think about long-term investment because it is not clear when they can redeem their shares or get dividends.
Saadilah assured that in the long run DSTP shareholders would get capital gains, at least from the appreciation of the U.S. dollar against the rupiah.
In addition, they would get dividends from royalties accrued from the sales of N-2130 jets, he said. (rid)