PT Great River Industries to issue rights shares

PT Great River Industries to issue rights shares

JAKARTA (JP): A publicly-listed textile manufacturer, PT Great River Industries, plans to issue two rights shares for one old share next year to raise approximately Rp 129 billion (US$56.1 million), the company's president said yesterday.

Sunjoto Tanudjaja said in a presentation for securities analysts and investors here yesterday that PT Nikko Securities Indonesia will act as the lead underwriter of the rights issue.

Sunjoto said that 50 percent of the funds from the rights issue will be used to finance the expansion of its distribution and retail outlets, 20 percent for investment in its joint ventures, 15 percent for production capacity expansion and the remaining 15 percent for the repayment of short term loans.

Sunjoto said that since 1993, the company has entered the retail and distribution business through its subsidiary, PT Inti Fashindo International.

He said that the company also has had 7,700 retailer customers, including a number of major department stores such as Matahari, Metro, Sogo, Seibu, Makro and 360 retail units.

Sunjoto reported that during the first nine months this year, the company booked Rp 124.14 billion in net sale revenues, 70 percent of which was derived from the domestic market, and Rp 9.48 billion in net profit. As of Sept. 30, its total assets reached Rp 376.43 billion.

The company expected Rp 190 billion in net sales and Rp 13 billion in net profit for the whole year.

Great River has obtained the licenses to produce 40 foreign brands of shirts and underwear, including Arrow for shirts and Triumph for ladies underwear.

Great River, which issued 39.6 percent of its total outstanding shares through an initial public offering in 1989, made its first rights issue in 1993, raising Rp 35 billion.(08)