Selamat Sempurna to sell 34.4m shares

Selamat Sempurna to sell 34.4m shares

JAKARTA (JP): PT Selamat Sempurna, an automotive parts
manufacturer, plans to sell 34.4 million shares, each with a
nominal value of Rp 500 (21 U.S. cents), to raise approximately
Rp 70 billion.

"Of the total proceeds of the planned initial public offering,
55 percent will be used to finance our expansion plan, 30 percent
to repay bank loans and the remaining 15 percent to strengthen
our working capital," the company's president, Eddy Hartono, said
yesterday.

A. Gunawan, a director of PT Indosurya Securities, the lead
underwriter of the share offering, said that the shares will be
priced at a level that offers a price/earning ratio of eight
times to 12 times on a 1996 net profit projection of Rp 18
billion.

In 1995, the company's profit reached Rp 6.9 billion.

Eddy said the company's sale revenues steadily increased from
Rp 61 billion in 1993 to Rp 79 billion in 1994 and Rp 102 billion
last year.

"This year we expect to book Rp 133 billion in sale revenues,"
he added.

He also said that the company will maintain a sales
composition of 60 percent for the domestic market and 40 percent
for exports.

Commenting on the company's prospects, Eddy said: "We are
ready to support the national car program. We have also
negotiated with PT Timor Putra Nasional to participate in the
program as a spare parts supplier."

Under its national car program, the government has appointed
Timor Putra to develop a "national car" in cooperation with Kia
Motors of South Korea with special exemptions from import duties
and luxury tax.

Selamat Sempurna's main products are radiators and filters
under the brand name of Sakura. Other products are brake pipes,
fuel pipes, fuel tanks, air conditioners and mufflers. (alo)