Suryamas Dutamakmur to offer shares to public

JAKARTA (JP): PT Suryamas Dutamakmur, a real estate developer, will offer 80 million new shares to the public next month to raise funds to finance the construction of two projects in Bekasi and Rancamaya, both in West Java, an executive said.

The new shares will account for 15.27 percent of the company's enlarged capital, the company's president, Kenneth Lian, told reporters after a presentation to securities analysts yesterday.

He said the new shares will be sold during an initial public offering period set tentatively for the middle of September.

"The exact date will be decided after the company conducts an international road show for a promotion to potential overseas investors," he said.

The shares, each with a par value of Rp 500 (22 U.S. cents), will be offered at about Rp 1,200 each.

Kenneth explained that 78 percent of the funds to be raised from the share issuance would be used to finance land purchases through its subsidiary, PT Centranusa Majupermai, for the establishment of the Bekasi Township housing complex and the other 22 percent to improve the working capital for constructing the Rancamaya project.

"We will not use the funds to pay our debts," he said.

Avi Y. Dwipayana, president of PT Trimegah Securindolestari, the underwriter of Suryamas's share issuance, said that the new shares were likely to be listed on the Jakarta and Surabaya Stock Exchanges.

Kenneth reported that during the January-April period, his company recorded net sales of Rp 41.35 billion and an after-tax profit of Rp 15.096 billion.

Suryamas Dutamakmur's net sales increased to Rp 40.21 billion last year from Rp 17.6 billion in 1993, while its after-tax profit rose to Rp 5.76 billion from Rp 4.46 billion.(31)