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)