Surya Dumai Industri to change IPO gains

JAKARTA (JP): PT Surya Dumai Industri, a publicly listed timber company, announced Wednesday it would divert the use of 20 percent of its initial public offering (IPO) proceeds.

The company said the IPO proceeds, which were initially earmarked for the establishment of a new fiberboard plant, would be used to raise its stake in PT Perawang Lumber Industri, another timber company.

It said the change should strengthen its future performance.

The company is to hold a shareholders meeting on June 10 to obtain approval for the measure.

In June, last year, the company sold around 120 million shares, or 30 percent of its enlarged capital, to the public to raise Rp 78.8 billion (US$32.83 million).

According to the prospectus issued before the IPO, 37 percent of the proceeds were to be used to develop its industrial estates, 20 percent to establish a medium-density fiberboard manufacturing plant, 27 percent to pay the company's loans and 16 percent to increase its working capital.

The Riau-based Surya Dumai Industri has three timber estates, covering a total area of 97,720 hectares. They are managed by its subsidiaries PT Rimba Rokan Hulu, PT Perawang Sukses Industri and PT Perawang Lumber Industri.

The company also has six forestry concessions, totaling 734.470 hectares, managed by its subsidiaries PT Rokan Permai Timber, PT Sri Buana Dumai, PT Kulim Company, PT Sejati Riau Trading Co. I, PT Sejati Riau Trading Co. II and PT Expra Baru Utama.

The firm posted a net profit of Rp 44.09 billion in 1996, up from Rp 28 billion in 1995. (09)