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)