PT Siloam expects $59M from IPO

JAKARTA (JP): PT Siloam Gleneagles Health Care (SGHC) will sell 47 million shares in its initial public offering (IPO) this year at between Rp 2,950 and Rp 3,300 (US$1.4) per share to raise US$59 million, said Chief Commissioner James T. Riady.

Riady said Tuesday that the fund would be used to finance a five-year project which would be completed by the year 2000.

Kelvin Lee, the corporate finance director of PT Lippo Securities, the underwriter of the share issuance, said the offered shares would account for 32.02 percent of SGHC's enlarged capital.

He said Siloam aims to gain an operational profit of Rp 27.1 billion and an after-tax profit of Rp 9.2 billion in 1996/1997.

The net profit is projected to increase to Rp 24.7 billion in 1997/1998, to Rp 38.2 billion in 1998/1999 and to Rp 108 billion in 1999/2000.

Siloam Gleneagles is the first hospital in the country to involve foreign investment. Siloam is a joint venture between Lippo Land Development of Indonesia and Gleneagles International of Singapore.

Riady said the project would include the construction of seven new Siloam Gleneagles hospitals -- Siloam Gleneagles Tangerang, Siloam Gleneagles Trisakti, Siloam Gleneagles Jakarta Timur, Siloam Gleneagles Jakarta Selatan, Siloam Gleneagles Bandung, Siloam Gleneagles Bali and Siloam Gleneagles Ujungpandang.

In addition, Siloam would also increase its ownership in Budi Mulia Hospital in Surabaya, East Java, and build three health centers in Jakarta, he said.

SGHC, which started operating in June 1996, is 35 percent owned by PT Sentra Kharisma Indah, 30 percent by PT Sentra Goldhill Businesspark, 30 percent by Gleneagles Development Pte. Ltd and 5 percent by Global Private Equity.

The company's president, Johanes Oentoro, said the hospital service industry in Indonesia would keep expanding at the current ratio of one physician for 6,786 persons. (10)