Sempati in final stage of its go-public plan

Sempati in final stage of its go-public plan

JAKARTA (JP): Preparations for the initial public offering of PT Sempati Air's shares has reached its final stage, the company's president Hasan Sudjono announced yesterday.

"We hope to complete the preparation within the next two months," he said at a post Idul Fitri gathering of the Humpuss Group which controls Sempati.

In addition to Sempati, the Humpuss Group is also preparing its shipping arm, PT Humpuss Sea Transport, to sell shares to the public this year.

Hasan did not disclose the amount of fresh funds expected to be raised from Sempati's public offering.

The chairman of the Humpuss Group, Hutomo (Tommy) Mandala Putra, the youngest son of President Soeharto, said earlier that his business group would raise about Rp 500 billion (US$218 million) from the public offering of the two companies.

He said that both Sempati and Humpuss Sea Transport would sell 20 percent of their new shares in the initial public offerings.

Tommy said the proceeds raised from Sempati's public offering would be used to procure new airplanes and to repay the company's debts.

Hasan said yesterday that Sempati's 1995 profits would stay at previous year's level.

"The 1995 financial reports are being audited. But there will be no major changes from the previous year's performance," he said. He disclosed Sempati posted a Rp 20 billion profit in 1994.

Sempati, which now serves Singapore, Kuala Lumpur, Taipei and Sydney, will soon fly to Hong Kong, he said. He added that the airline is now assessing the commercial viability of entering Europe. (hen)