Jakarta (ANTARA News) - The Indonesian Stock Exchange (BEI) is optimistic that it will achieve its target to have 25 companies floating their shares through the initial public offering (IPO) mechanism in 2011.

"At present, we acknowledge that only 22 new share issuers have been recorded. We have another one which will soon be on listing namely Pt Erajaya Swasembada," Eddy Sugito, BEI director for assessment and stock-staking affairs, said during the share listing of PT ABM Investama (ABMM) on Tuesday.

He said that actually there were two other firms which had been ready to go IPO at the end of this year. Information on their plans to float shares could be obtained from the Capital Market and Financial Institutions Supervisory Board (Bapepam-LK) in the coming two weeks.

"We can still expect that they are listing this year. If that happen, our target to have 25 issuers this year could be achieved," he said.

He said that two companies which were ready to list their shares to the stock exchange were PT Saranacentral Bajatama and PT Greenwood Sejahtera.

Since early this year, 22 firms have been listed to go IPO in the stock exchange, and PT ABM Investma was the 22nd to be listed.

In the first trade, ABM Investama was able to raise the price of its share to the Rp4,100 position with a transaction volume of 2,557 shares worth Rp6.72 billion.

The company floated a total of 55,633,000 shares (20 percent) to the public at a price of Rp3,750 per share with total IPO value of Rp2.065 billion.

Of the funds obtained through the IPO, 70 percent will be used for business expansion, 24 percent for mining acquisition debt financing and the remaining one is for working capital.

ABM Investama Strategic Director Yovie Priadi said his company had set a net profit growth target this year of 359-400 percent. The growth was expected to be boosted by the company`s income which increase by about 40 to 50 percent.(*)


Editor: Jafar M Sidik
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