Putra Sumber expecting $80m from IPO
Putra Sumber expecting $80m from IPO
JAKARTA (JP): PT Putra Sumber Utama Timber, an integrated
manufacturer of processed wood, said yesterday that it will sell
40 million shares of its enlarged capital through an initial
public offering (IPO) in order to raise about US$80 million.
A director of the company, David Se, told journalists
yesterday that the company will allocate 50 percent of the share
offering proceeds for financing the development of its timber
estates, 20 percent for investing in secondary processing, 10
percent for expanding of its laminated veneer lumber (LVL)
production and the remaining 20 percent for strengthening its
working capital.
Putra Sumber's products comprise LVL, plywood, sawn timber and
particle boards.
David said that the monthly production capacity of LVL
currently stands at 6,000 cubic meters and will reach 10,000
cubic meters after the second phase of expansion.
Putra Sumber currently has two subsidiaries -- PT Sumber
Hutani Lestari and PT Pendamaran Indah -- which operate timber
estates covering 80,000 hectares in Jambi, he said.
Deswandy, a director of PT Peregrine Sewu, the lead
underwriter of the planned public offering, said that Putra
Sumber's shares will be offered at a level with a price earning
ratio of eight to 10 times the company's projected net profit in
1996.
Deswandy said Putra Sumber has projected to book a net profit
of Rp 49 billion (US$20 million) this year against last year's Rp
17 billion. In the first five months of this year, its profit
exceeded Rp 17.6 billion.
David said that Putra Sumber's net revenue steadily increased
from Rp 102 billion in 1994 to Rp 186 billion last year. In the
period of January to June of this year, its revenue topped Rp
87.4 billion.
Putra Sumber is 85 percent owned by PT Haskojaya Abadi and 15
percent by PT Okuratama Sejati.
David also confirmed that Putra Sumber has issued convertible
bonds worth Rp 58 billion. The bonds can be converted to 20.5
million shares at a conversion price of Rp 2,845.
The bondholders will therefore own a 12 percent stake in Putra
Sumber, while the investing public will hold 25 percent. (alo)