0 Indonesia's Astra Otoparts Set to Offer 11.4 Billion Fresh Shares

Astra Otoparts, an automotive parts maker and distributor under car giant Astra International, has announced it aims to raise fresh capital by selling shares in a limited public offering in May. Funds from the rights offering will be used to finance debt payments and business expansion plans. The Jakarta-based company said it wanted to generate Rp 3.1 trillion ($319 million) from the limited share offering. Astra Otoparts plans to sell 1.4 billion shares at a price of between Rp 2,200 and Rp 3,400 apiece, according to a brief prospectus published in Bisnis Indonesia on Monday. 

Existing shareholders will be entitled to purchase 20 to 40 new shares for every 100 shares they already own come April 29. Astra Otoparts is 96 percent controlled by Astra International, the largest automotive distributor in the country. Some 74 percent of the limited public offering’s proceeds will be used as an early payment for the company’s accumulated debt and 26 percent will be used to inject capital or provide loans to its subsidiaries in the automotive manufacturing and trade industry. According to Astra Otoparts’ financial statement, the company had a total long-term debt of Rp 401.51 billion at Dec. 31, 2012. 

On Wednesday last week, the firm announced that it had signed an agreement with Pakoakuina to acquire a 51 percent stake in the alloy aluminum wheel rim maker. Pakoakuina also has a stake in Inkoasku, a producer of steel wheel rims for four-wheeled vehicles, and Palingda Nasional, a manufacturer of steel wheel rims for trucks and buses. Last month, Astra Otoparts reported a 2 percent rise in net income to Rp 1.14 trillion last year compared to 12 months prior, while its revenue rose 13 percent to Rp 8.28 trillion. 

Trimegah Securities said the earnings result was above expectations, with net income coming in at 13 percent more than the firm’s analysts had predicted, and 36 percent higher than the forecast made by a group of stock-watchers monitored by Bloomberg. Trimegah estimates Astra Otoparts’ revenue will increase 16 percent to Rp 9.6 trillion this year, while net income is expected to rise 14 percent to Rp 1.3 trillion, supported by anticipated growth in both motorcycle and car sales. Shares of Astra Otoparts traded 2.4 percent lower to close at Rp 4,025 on Monday, while the main index lost 0.3 percent.

source : the jakarta globe