SSI optimistic about initial public offering
JAKARTA (JP): PT Surya Semesta Internusa (SSI) said it is optimistic that its initial public offering (IPO) this month would be a success.
The company said over the weekend that many fund managers had expressed enthusiasm to buy the company's stocks during public presentations in Singapore, Hong Kong, London and Edinburgh recently.
SSI plans to sell around 20 percent of its enlarged shares or around 135 million shares in the local domestic market this month at a price of between Rp 1,000 and Rp 2,250.
The company expected to raise between Rp 135 billion (US$57.2 million) and Rp 168 billion from the IPO, it said.
The company said 58 percent of the capital raised would be used to finance the expansion of its industrial estates, 38 percent for strengthening the capital structure and the remaining 4 percent for working capital.
SSI has appointed PT Usaha Bersama Sekuritas as the managing underwriter for the share offering.
The company was established in 1971 under the name PT Multi Investments and changed its name in 1994 to PT Surya Semesta Internusa.
Surya's consolidated assets as of September 1996 were Rp 860.9 billion and its revenue was Rp 421.2 billion. The company's net profit, which totaled around Rp 23.4 billion as of September 1996 is projected to hit Rp 48 billion in 1996, much higher compared to Rp 20 billion in 1995 and Rp 4.8 billion in 1994.
The company covered four lines of business: industrial and real estate, construction services, building materials and hotels.
The business group's property projects include the 1,400 hectare industrial estate in Karawang, West Java where the first 500 hectares were developed. The industrial estate facilities have attracted Levi's, JVC, GS Battery, Bridgestone, Bakaert and the Indonesian Ceramic Association (KIA). Sumitomo Corporation is marketing the industrial estate to Japanese investors.
The industrial estates are expected to contribute 71 percent of the total profit, 15 percent from construction, 3 percent from building materials, 3 percent from hotels and 8 percent from other businesses. (10)