Sempati Air delays plan for initial public offering
Sempati Air delays plan for initial public offering
JAKARTA (JP): Private regional airline Sempati Air has delayed
its plan to list on the Jakarta Stock Exchange this year because
of unfavorable market conditions and an uncertain political
environment.
Sempati spokesperson Rima Novianti yesterday told The Jakarta
Post the initial public offering would be delayed until next
year.
"The market currently focuses on the listing of (the state-
owned bank) Bank Negara Indonesia 1946. So we decided to postpone
our plan to go public," she said.
Sempati planned to publicly offer between 15 percent and 30
percent of its shares in October or November this year and raise
about Rp 200 billion (US$85.32 million) to Rp 300 billion in
fresh funds.
The company has selected PT Bahana Sekuritas as chief
underwriter and PT Pentasena Securities as financial advisor for
the float.
"We'll also consider the political situation next year," Rima
said without elaborating.
Next year the country will hold a general election for members
of the House of Representatives, which will elect the country's
President and Vice President in 1998.
Sempati was set up eight years ago with 25 percent of its
shares owned by the Humpuss Group, a diversified business
conglomerate controlled by President Soeharto's youngest son
Hutomo Mandala Putra, 40 percent by PT Tri Usaha Bhakti, a
holding company of the Armed Forces, and 35 percent by timber
tycoon Mohammad (Bob) Hasan, one of Soeharto's closest friends.
In April, Sempati agreed to sell 40 percent of its shares to
Asian Aviation Inc., a Malaysian-Indonesian joint venture, in
order to raise capital before going public. When the decision to
go public was made the carrier was 25 percent owned by Tri Usaha
Bhakti, 20 percent by Hasan, 15 percent by Humpuss Group and 40
percent owned by Asian Aviation, a company partly controlled by
Hasan.
Consolidation
According to Rima, during the postponement period, Sempati
would try to consolidate its position to make itself more
attractive to investors, Rima said.
"We will also become more financially sound, so that we will
be in a good shape."
Aviation analysts said Sempati's financial structure was
complicated, making some of its advisors withdraw from float
preparations.
Sempati reported in April that after the planned public
offering its paid-up capital would increase to about Rp 210
billion ($89.6 million) from Rp 50 billion. The company's profit
this year is about Rp 80 billion, compared to Rp 26 billion in
1995.
The company is currently waiting for ISO-9002 certification
from the British Bureau Veritas Quality International. (icn)