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)