PT Eterindo to issue 170m shares
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)