PT Eterindo to issue 170m shares

JAKARTA (JP): Integrated chemical producer PT Eterina Wahanatama will list 170 million shares or 25 percent of its capital on the Jakarta and Surabaya stock exchanges in May.

The company's president, Hadiran Sridaja, said yesterday the shares would be issued at Rp 1,400 each and the company expected to raise about Rp 240 billion (US$100 million).

Hadiran said the money raised would be used to build new plants and for working capital.

About $50 million will be used to build PT Anugerahinti Gemanusa's plant, a polyvinyl alcohol and acetic acid producer.

Ten million dollars will be working capital for synthetic resins and plasticizer producer PT Eterindo Nusa Graha, $10 million will be used repay Buana Chemical Industries' (EBCI) debt, $10 million will be used to modernize EBCI's production facilities, $13 million will be working capital for EBCI and $2 million to repay EBCI's leasing facility.

"Part of the proceeds will be used to finance the expansion plan to make Eterindo play significant role in domestic and Asian market," Hadiran said.

PT Vickers Ballas Tamara will be the lead underwriter.

PT Eterindo Wahanatama was established in 1992 by the Sridaja family group's seven chemical companies: EBCI, PT Petrowidada, PT Anugerahinti Gemanusa, PT Inti Mutiara Gasindo, PT Eterindo Nusa Graha, PT Globechem Pacific Perkasa and PT Buana Slovindo.

EBTI makes plasticizers, synthetic latex resins, unsaturated polyester resin and alkyd and amino resin. It can make 100,000 metric tons a year but capacity will be increased to 125,000 tons a year in 1998 when facilities will be modernized.

PT Petrowidada makes phthalic anhydride and can make 70,000 metric tons a year which will rise to 130,000 metric tons a year in 1998.

PT Eterindo Nusa Graha makes synthetic resin and plasticizers and can make 60,000 metric tons a year.

PT Anugerahinti Gemanusa makes polyvinyl alcohol and acetic acid and can make 69,000 metric tons a year.

PT Eterindo Wahantama's general manager, G. Wahyudi Harjo, said the firm would invest between Rp 300 billion and Rp 350 billion in the next three years.

"Total investment required will be around Rp 1 trillion in the next three years," he said.

Yudi said 70 percent would be spent financed by loans from overseas financial institutions.

"The Petrochemical industry is a capital intensive industry," he said.

PT Eterindo Wahanatama, which had total assets of Rp 650 billion on December 31, 1996, posted a Rp 15.2 billion net profit in 1995 which rose to Rp 26.4 billion in 1996.

"The company expects to earn a Rp 93 billion net profit in 1997," he said.

The company's net sales were Rp 254.2 billion in 1996, down from Rp 331.1 billion in 1995.

The drop in sales was because of a drop in product prices on world markets, he said.

The company will promote its shares in Singapore, Hong Kong, Edinburgh, London and Switzerland next week. (09)