Steady Safe plans to offer 11.65 million new shares

Steady Safe plans to offer 11.65 million new shares

JAKARTA (JP): PT Steady Safe, a company operating taxicabs and
buses in the greater Jakarta area, will offer 11.65 million new
shares accounting for 19.75 percent of its enlarged common stocks
to the public later this month.

Jopie Widjaja, the company's president, told reporters after a
presentation here Friday evening that the new shares, each with a
nominal value of Rp 1,000 (46 U.S. cents), will be sold at a
price offering a price-earning-ratio (PER) of about nine times to
10 times.

He refused to specify the sales price because his company was
still waiting for approval from the Capital Market Supervisory
Agency (Bapepam). However, he did say that his company expects to
generate about Rp 60 billion (US$27.82 million) from the issue of
the shares.

Steady Safe, which is wholly owned by PT Infiniti Wahana, was
promoting its plan to offer new shares to the public in March
with PT Credit Lyonnais Capital Indonesia (CLCI) as its lead
underwriter, offering a PER of between 10 times and 13 times.

Hary Tanoesoedibjo, president of PT Bhakti Investama, Steady
Safe's new lead underwriter, said the offering period of the new
shares is scheduled from June 29 to July 1.

The new shares will likely be listed on the Jakarta and
Surabaya stock exchanges by July 29, Hary added.

Jopie said Steady Safe will use 39 percent of the proceeds
from the share issuance to finance the expansion of its fleets,
58 percent to provide loans for its subsidiaries and the
remaining three percent to repay debts.

He explained that his company and its subsidiaries -- PT Citra
Pancakabraja, PT Wahana Artha Sentosa, PT Luhur Satria Dwriya and
PT Mastrans Swadarma -- which currently operate 1,410 taxi cabs
and 40 buses, will procure 237 new cabs, 60 buses and 100
limousines later this year.

Steady Safe and its subsidiaries are the operators of Steady
Safe Taxi, Spirit Taxi, Swadharma Taxi, Transit Cab and Masstrans
Patas AC express city buses.

Steady Safe's finance director, Jose Panginaban Jr., said the
company's after-tax profit, which increased from Rp 4.26 billion
in 1992 to Rp 6.79 billion last year, is expected to further
increase to Rp 21.1 billion this year.

The company's net revenues rose from Rp 12.21 billion in 1992
to Rp 16.83 billion last year and is projected to increase to Rp
53.67 billion this year.(02)