Siantar Top expects $25.5m from IPO

JAKARTA (JP): Surabaya snack food producer PT Siantar Top will float 28.4 percent of its shares on the Surabaya and Jakarta stock exchanges to raise Rp 60 billion (US$25.5 million), the company announced.

Siantar's president, Shindo Sumidomo, said yesterday that 45 percent of the money raised would be used to finance the company's diversification and expansion programs, 15 percent to strengthen its working capital and 38 percent to repay debts.

Sumidomo said the 27 million shares, each with a nominal value of Rp 500, would be offered for between Rp 2,200 to Rp 2,575 a share.

The period of the initial public offering is from Nov. 25 to Nov. 27.

Siantar director Goh Sugiarto said the company could produce 20,150 tons of noodles and 19,600 tons of crackers and candy a year.

Siantar's net sales grew approximately 60 percent between 1993 and 1995: From Rp 32 billion in 1993 to Rp 63 billion in 1994 and to Rp 86 billion last year. Its net profit rose from Rp 2.8 billion in 1993 to Rp 5.7 billion in 1994 and to Rp 6.4 billion last year.

In the first half of this year, Siantar booked Rp 57 billion in net sales and Rp 4.4 billion in net profit.

PT Jade Securities and PT Credit Lyonnais Securities Indonesia are the lead underwriters for the public offering. (alo)