Ricky Putra to go public next month

Ricky Putra to go public next month

JAKARTA (JP): Garment company PT Ricky Putra Globalindo plans
to sell 60 million new shares, or 37.5 percent of enlarged
shares, to the public next month to strengthen the its operations
and repay loans.

The company's marketing director, Tirtaheru Citra, said
yesterday it would float the shares on the Jakarta and Surabaya
stock exchanges next month.

"We expect to raise about Rp 50 billion from the initial
public offering," Tirtaheru said.

He said 17 percent of the funds would be used to strengthen
its distribution networks, 30 percent to repay loans, and the
remaining 53 percent for further expansion.

PT Trimegah Securities will arrange the initial public
offering.

Tirtaheru said although the garment industry was generally
facing dim prospects, he was optimistic that Ricky, producer of
GT Man underwear and other products, still had a good future in
the country.

GT Man had a 35.4 percent market share in the sale of men's
underwear in the country, he said.

"Men's underwear is a basic need, and is not seasonal, so we
are not worried about a drastic sales decline," he said.

Tirtaheru said 72 percent of what the company produced was
underwear.

About 73 percent of products are sold domestically and the
remaining 27 percent are exported.

The company's sales reached Rp 61.5 billion in the first half
of this year, with a net profit of Rp 6.2 billion.

Ricky has five distribution subsidiaries in Sumatra and Java.
(das)