Sri Tex To Launch IPO Floating 30.12 Percent Of Shares

Jakarta, 20/5 (Antara) - Textile producer PT Sri Rejeki Isman (Sritex) plans initial public offering (IPO) next month to raise fund to finance expansion. Sri Tex will float 5.6 billion shares or 30.12 percent of its shares in the IPO at a price of Rp230 - Rp385 each. "Most or 87 percent of the fund from the share sale will be used to expand its spinning division and remaining 13 percent for the expansion of its garment making division," its President Director Iwan Setiawan said. The company will increase its spindles with 287,000 units and expand its garment production capacity by 8 million pieces per year, Iwan said here on Monday. With the capacity expansion, the company is set produce 16 million pieces of garment this year, he said. The company also plans to export its textile products to China in the next three years after securing the license from Uniqlo of Japan, he said. China, which continues to record a strong growth in its Gross Domestic Product (GDP), is a potential market, he said. China itself is the world largest textile producer. Iwan said the Financial Service Authority (OJK) is expected to grant approval for the IPO on June 5, 2013 and public offering would take place from June 10 to 12. Listing on the Indonesian Stock Exchange is expected on 17 June, 2013. Meanwhile, Eko Yuliantoro, the president of PT Bahana Securities, as the underwriter, said the share prices would be based on the result of evaluation of market demand. In 2012, the company reported Rp4.11 trillion in sales , up from Rp3.56 trillion in the previous year. Its profit increased to Rp229.31 billion from Rp161.45 billion.