Surya Semesta Internusa to float 20% of shares

JAKARTA (JP): PT Surya Semesta Internusa (SSI) plans to float 20 percent of its total enlarged shares, around 135 million shares, on the local stock exchange to raise fresh funds to finance its expansion program.

Company president Marseno Wirjosaputro said yesterday that the property company expected to raise between Rp 135 billion (US$57.2 million) and Rp 168 billion from the sales of the common shares, each with a par value of Rp 500.

He said around 60 percent of the proceeds would be used to finance the company's expansion plan, including its industrial and real estate business in Karawang and the remaining 38 percent for the payment of its debts.

SSI is now owned by 10 individual shareholders with Benjamin Arman Suriadjaya, the younger brother of William Suriadjaya, the founder of Astra International, having more than 40 percent.

"The other nine shareholders account for less than 60 percent," Marseno said without elaborating.

He said PT Usaha Bersama Sekuritas (UBS) will become the lead underwriter for its capital market debut.

PT SSI was established 26 years ago under the name of PT Multi Investments. It changed its name in 1994 to PT Surya Semesta Internusa.

In the early years, the late founder of PT Astra International, William Suriadjaja, held a small percentage in the company before he sold them to other shareholders, Marseno said.

He said the company covers four lines of business: industrial and real estate, construction services, building materials, hotels and other investments.

He said the firm's net profits rose significantly to Rp 20 billion in 1995 from Rp 5 billion in 1994. The firm's net profit, which reached Rp 24 billion in the third quarter of last year, was expected to total Rp 40 billion for 1996.

"We expect to see a 100 percent increase in net profit compared to 1995," said the firm's vice president, Johannes Suriadjaya, who is also the son of Benjamin A. Suriadjaja.

Johannes said the firm had accumulated total assets worth Rp 898 billion as of September 1996 while in 1995 the company's total assets amounted to Rp 700 billion.

Johannes said industrial and real estate businesses contributed 76.4 percent to the company's total net profit in 1996, and construction 14.6 percent.

He said industrial and real estate businesses would be the company's core business.

He said presently the company, through its subsidiary PT Suryacipta Swadaya, owns an industrial estate with a total area of 1400 hectares in Karawang, West Java. Of the total, 500 hectares have been exploited, and 240 are occupied by industries. (09)