Trust Finance plans IPO

Trust Finance plans IPO

JAKARTA: Financing company PT Trust Finance Indonesia said Tuesday it will sell 100 million shares at Rp 170 (1.8 US cents) each in an initial public offering (IPO) later this month.

The shares on offer to the public starting Monday represent 25 percent of the company's equity, Trust Finance said in a statement.

The company plans to list its shares on the Jakarta Stock Exchange Nov. 28.

It will use all proceeds from the IPO to finance consumer loans.

Trust Finance is one of few local companies which are pressing ahead with their IPO plans after the blasts on Bali island last month hurt market sentiment.

Another company which will sell shares to the public later this year is state-owned coal miner PT Tambang Batubara Bukit Asam.

Trust Finance was established in 1990. It booked net profit of Rp 2.35 billion in the first half of this year, already more than triple its full-year profit of Rp 665.05 million in 2001. -- Dow Jones