PT Maharani makes capital market debut

PT Maharani makes capital market debut

JAKARTA (JP): Multifinance firm PT Maharani Intifinance made
its capital market debut Wednesday and announced plans to open at
least five more branches this year.

A company director, Stefanus Ginting, said the new branches
would be opened in Surabaya in East Java, Semarang in Central
Java, Bandung in West Java, Denpasar on Bali, and Balik Papan in
Kalimantan as part of the company's expansion program.

"The opening of new branches is part of our short-term
expansion program," he announced after the company's listing on
the Jakarta Stock Exchange.

He said the opening of the branches would increase the
company's leasing and consumer finance services.

In the next five years, the company's three business sectors
-- factoring, consumer finance and leasing -- were expected to
contribute equally to the company's revenue, he said.

Stefanus said leasing currently contributed about 80 percent
to the company's revenue, leasing 15 percent and consumer finance
5 percent.

"The three businesses are expected to contribute equally in
the coming years," he said.

Stefanus said the company, which had total assets of Rp 200
billion as of June 1997, expected to post a pretax profit of Rp 6
billion this year.

"As of June, gross profit reached Rp 2 billion," he said.

Hendra H. Kustarjo, director of Panin Securities, the lead
underwriter of the company's initial public offering (IPO), said
demand for the company's shares was four times higher than the
available shares.

The company's shares sold for Rp 600 each in the IPO last
month.

He said the price earning ratio (PER), based on its 1997
profit estimate, was about 8, lower than the average PER of
between 12 for the multifinance industry.

The company's share gained Rp 300 to close at Rp 900, with
58.79 million shares changing hand on the regular market.

Maharani sold 58.8 million shares or 49 percent of its
enlarged capital during the IPO, raising a total of Rp 32
billion.

Ginting said yesterday that 57.63 percent of the proceeds
would be used to finance the company's expansion plan, 38.83
percent to refinance debts and 3.54 percent to open new branches.

Before the IPO, Maharani was 50 percent owned by PT Maharani
Paramitra (controlled by Mrs. Titiek Prabowo, President
Soeharto's second daughter), 40 percent by PT Minsuco Multi
Usaha, 7.5 percent by The Tje Min and 2.5 percent by Susanti
Prawinoto. (aly)