Sole agent of Konica to float shares

JAKARTA (JP): PT Perdana Bangun Pusaka (PBP), the sole agent of Konica film of Japan, will sell around 30 percent of its enlarged stocks to the public to raise funds for its expansion program.

The company will be the third photographic firm listed on Jakarta and Surabaya stock exchanges after Modern Photo, the sole agent of Fuji film and Inter Delta, the distributor of Kodak film.

Beng Irawan, a director of Perdana Bangun Perkasa, said here yesterday that the shares, each with a par value of Rp 500 (US$0.23), will be offered to the public in February.

"We plan to list the shares on the Jakarta and Surabaya stock exchanges in the middle of February," he said of the company's initial public offering (IPO) plan.

BDNI Securities is acting as the lead underwriter of the company's IPO.

Beng said that the IPO proceeds will finance the company's expansion activities such as increasing the annual production capacity of its photographic paper from 300,000 rolls at present to 600,000 rolls per annum and the construction of a camera assembling plant.

He said that Perdana Bangun will invest around Rp 7.4 billion (($3.4 million) for the construction of the first unit of the camera factory.

"The first unit of the camera factory will have a production capacity of between 300,000 units annually," he said, adding that the two expansion projects will be completed within the next three years.

Perdana Bangun, which controls around 30 percent of the photographic film and paper market in the country, will also use part of the IPO proceeds to double its retail outlets to 22.

Beng said that the expansion program is a crucial strategy in enabling the company to further tap the growing market of photographic products.

"Indonesia, with its huge population, is a very potent market for photographic products," he said, adding that the per capita use of photographic films in Indonesia, which is only 0.11 at present, will continue to increase in line with the rapid growth in the country's economy.

Bangun Persada, with total assets of around Rp 65 billion as of August, recorded growth sales of around 25 percent per annum over the last three years.

Beng refused to explain the company's financial performance saying that the data will be available only during the company's presentation to investors and securities analysts on Monday.(hen)