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Rodamas to go public to increase working capital. (Capital Market).



PT Rodamaa, which operates in trading, mining, manufacturing construction and advertising will launch an initial public offering (IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ) for 105 million of its shares with a nominal value Nominal Value

The stated value of an issued security that remains fixed, as opposed to its market value, which fluctuates.

Notes:
When referring to fixed-income securities, the nominal value is also the face value.
 of Rp 100 per share. The company hopes to raise fund to finance its program to buy more vehicles to strengthen its distribution networks, construction of new warehouses and strengthen working capital.

By offering around 13.37% of its shares to the public through the IPO, the composition of shareholders of the company will change. Tan Pei Ling, a commissioner of the company and who owns 91.88% of the company will have his share reduced to 73.56% after the IPO. Other shareholders including Iskandar Tanuwidjaja and Ishak Sumarno will also have smaller shares.

The company has an authorized capital of Rp 200 billion with issued capital of Rp 62.8 billion fully paid, leaving Rp 137.2 billion worth of shares in portfolio. After the IPO, the issued and paid up capital will rise to Rp 78.5 billion with shares in portfolio remaining Rp 121.5 billion.

Partly to increase working capital

Many other companies now have launched IPO to raise fund to repay debt, but Rodamas hopes to raise fund through IPO to strengthen its working capital. The company said in a promotional leaflet, it wants to buy more vehicles to support its distribution operation, build new warehouses, increase investment in associated companies, and strengthen its working capital.

The company said in the leaflet, by the end of 2002, it had a total liability of Rp 506 billion and most or Rp 295.86 billion are in short term liabilities. Operating debt contributed the bulk or Rp 207.4 billion to the short term debt. Long term liabilities totaled Rp 210.2 billion mostly in long term loan amounting to Rp 123.2 billion.

Operating income Operating Income

The profit realized from a business' own operations.

Notes:
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit.
 at Rp 295.6 billion

In the beginning Rodamas operated mainly in the distribution of imported products in Indonesia. Later the company, which was established by Tan Siong Kie expanded operations with investment in 24 other companies operating in various business areas including manufacturing of building materials Building materials used in the construction industry to create .

These categories of materials and products are used by and construction project managers to specify the materials and methods used for .
, food processing Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. The food processing industry utilises these processes.  industry, household equipment and personal goods industry, and chemical industry. Rodamas also distributes goods produced by its affiliates or subsidiaries or other companies in the country.

In 2000-2002, the income of the Rodamas group rose from Rp 80.6 billion in 2000 to Rp 295.6 billion in 2002. Sheet glass products contributed the largest portion or Rp 82 billion to its income in 2002, followed by MSG MSG: see glutamic acid.  Rp 72.7 billion and galvanized iron Noun 1. galvanized iron - iron that is coated with zinc to protect it from rust
corrugated iron - usually galvanized sheet iron or sheet steel shaped into straight parallel ridges and hollows
 sheets Rp 56.4 billion.

Diversification of products through 24 subsidiaries and associated companies

The types of building materials produced by the Rodamas Group include sheet glass, galvanized iron sheets, louver louver

Arrangement of parallel, horizontal blades or slats of glass, wood, or other material designed to regulate airflow or light penetration. Louvers are often used in windows or doors to allow air or light in while keeping the elements out.
 windows and rolling doors. Sheet glass is produced by Asahimas Flat Glass which has six factories including 4 in Jakarta, one in Surabaya and one in Cikampek. Galvanized iron sheets are produced by PT Tumbakmas Inti Mulia. Louvre Louvre (l`vrə), foremost French museum of art, located in Paris. The building was a royal fortress and palace built by Philip II in the late 12th cent.  windows and rolling doors are produced by PT Dicky Metals and PT Sanwamas Metal Industry.

Food products are produced by PT Sasa Fermentasi, PT Sasa Inti and PT Ajinomoto. Spices and food seasoning, broth broth

liquid media for culturing microorganisms.


cooked meat broth
a medium useful for culturing anaerobic bacteria.

enrichment broth
one modified to permit growth by selected bacteria.
, and batter are produced by PT Mitratama Rasa Sejati. Mitratama Kencana Sejati produces sauce including chili (language) CHILI - D.L. Abt. A language for systems programming, based on ALGOL 60 with extensions for structures and type declarations.

["CHILI, An Algorithmic Language for Systems Programming", CHI-1014, Chi Corp, Sep 1975]
 sauce, tomato sauce and other types of sauce.

Consumer goods consumer goods

Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and
 are produced by PT Kao Indonesia including face treatment cosmetics, hair care cosmetics, household goods and cleanser tissue. Salonpas Indonesia produces plaster, liniment liniment, liquid preparation rubbed on skin, used to relieve muscular aches and pains. It contains some substance that when rubbed over the affected part causes mild irritation and often brings more blood to the painful part.  and analgesic analgesic (ăn'əljē`zĭk), any of a diverse group of drugs used to relieve pain. Analgesic drugs include the nonsteroidal anti-inflammatory drugs (NSAIDs) such as the salicylates, narcotic drugs such as morphine, and synthetic drugs  cosmetic.

In chemical industry, Rodamas has a 18% stake in PT Asahimas Chemicals that produces PVC PVC: see polyvinyl chloride.
PVC
 in full polyvinyl chloride

Synthetic resin, an organic polymer made by treating vinyl chloride monomers with a peroxide.
 resin with an annual production capacity of 370,000 tons. PVC compound is produced by PT Riken Asahi Plastics Indonesia which produces that material to be used in the production of cable for automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. .

Financial performance healthy

The strong growth in operating income in 2002 had good effect on the financial performance of the company. With operating income of Rp 1.94 trillion in 2002, the company chalked up a net profit of Rp 335.5 billion or a profit margin of more than 20%.

An increase in the net profit and equity in 2002, has improved its rentability ratio. Its current ratios also increased indicating that the company is quite liquid. With a current ratio of 191.8% in 2002, its current assets Current Assets

Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year.
, therefore, is almost twice larger than its short term liabilities.
Table--1

Share capital of Rodamas before and after IPO

       Description                          After IPO

                               Number of        Nominal      Portion
                              shares (000)       value         (%)
                                              (Rpmillion)

Authorized capital               2,000,000        200,000
Issued capital fully paid:
Tan Pei Ling                     577,588.0       57,758.8       91.88
Iskandar Tanuwidjaja              33,658.2        3,365.8        5.35
Ishak Sumamo                        17,360          1,736        2.77
Owner of convertible                    --             --
money order
Investing public                                       --
Total issued capital fully       628,606.2       62,860.6      100.0
paid
Shares in portfolio            1,371,393.7      137,139.3

       Description                            Before IPO

                               Number of        Nominal      Portion
                              shares (000)       value         (%)
                                              (Rpmillion)

Authorized capital               2,000,000        200,000
Issued capital fully paid:
Tan Pei Ling                     577,588.0       57,758.8       73.56
Iskandar Tanuwidjaja              33,658.2        3,365.8        4.29
Ishak Sumamo                        17,360          1,736        2.21
Owner of convertible              51,577.6        5,157.7        6.57
money order
Investing public                   105,000         10,500       13.37
Total issued capital fully       785,183.8       78,518.3      100.0
paid
Shares in portfolio            1,214,816.1      121,481.6

Source: Rodamas/Data Consult

Table--2

Breakdown of Rodamas' liabilities, By Dec. 31, 2002

Description                                    Total (Rp million)

Short term liabilities:
Bank loan                                                  12,605
Money order payable to party having special                17,184
connections
Operating debt                                            207,495
Other debts                                                 1,996
Tax debt                                                   12,294
Costs payable                                              24,469
Part of long term loan maturing in a year.                 16,308
Other short term liabilities                                3,488
Sub-Total of short term liabilities                       295,839

Long term liabilities:
Deferred tax                                               20,223
Long term loan                                            123,278
Convertible money orders                                   66,733
Sub-Total of long term liabilities                        210,234
Total liabilities                                         506,073

Source: Rodamas

Table--3

Operating income of Rodamas, 2000-2002

(Rp million)

Type of products                  2000        2001       2002
Building materials:
Glass                            (9,316)     50,126      82,035
Galvanized iron sheets          (38,131)     (3,324)     56,414
Louver windows                      980       2,102       1,347

Chemicals:
PVC, caustic soda &              29,905      (2,151)      8,708
other chlorine products

Food:
MSG                              17,909      45,733      62,782
Other food stuffs                 9,120       5,960       5,205

Consumer goods:
Household and personal goods     24,643      22,530      35,960
Analgesic plaster, analgesic      2,025       2,378       4,147
liniment, analgesic cream

Other businesses                 43,508      40,491      39,059
Total bperating income           80,643     163,845     295,657

Source: Rodamas

Table--4

Subsidiaries of Rodamas
by sectors of business, 2003

         Name of company             Shares        Line of business
                                     owned
                                      (%)

Tumbakmas Inti Mulia, PT             100       Galvanized iron sheets
Dicky Metals, PT                     100       Louver windows
Mitratama Kencana Sejati, PT         100       Sauce
Mitratama Rasa Sejati, PT            100       Spices
Esti Pura Kencana, PT                100       Investment holding
Tumbakmas Niaga Sejati, PT           100       Investment holding
Rodamas International Holdings       100       Investment holding
Rodamas Marketing (s) Pte. Ltd       100       Marketing abroad
Sasa Inti, PT                         50       MSG and other seasoning
                                                 products
Sasa Fermentasi, PT                   50       MSG
Ajinomoto Indonesia, PT               50       MSG and other seasoning
                                                 products
Kao Indonesia, PT                     49.97    Household and personal
                                                 goods
Dai Nippon Printing Indonesia, PT     49       Flexible packaging &
                                                 printing
Asahimas Flat Glass, PT               39.69    Sheet glass
Sanwamas Metal Industry, PT           36.74    Rolling door
Nabisco Foods, PT                     30       Biscuit, other snacks
Salonpas Indonesia, PT                25       Plaster and analgesic
                                                 cosmetic
Saint Gobain Winter Diamas, PT        25       Diamond grindstone & cbn
Eratex Djaja, PT                      19.6     Textiles
Asahimas Chemical, PT                 18       Caustic soda, PVC &
                                                 chlorine
Riken Asahi Plastic Indonesia, PT     10       PVC compound
Kao Indonesia Chemical, PT             5       Chemicals (SO3)
Video Display Glass Indonesia, PT      5       TV Bulbs

Source: Rodamas/Data Consult

Table--5

Consolidated financial balance sheet Rodamas,
2000-2002

(Rp billion)

Description                         2000       2001       2002

Total assets                       1,340.5    1,556.9    1,859.2
Current assets                       404.4      441.1      567.7
Fixed assets                         936.1    1,115.8    1,291.5
Total liabilities                    499.4      497.5      506.0
Short term liabilities               250.1      253.2      295.8
Long term liabilities                249.3      244.3      210.2
Minority rights                        0.1        0.1      0.009
Equity                               840.9    1,059.3    1,353.1
Operating income                   1,316.8    1,651.8    1,944.2
Net profit                           101.8      196.4      335.5
Ratios (%)
Current assets/                      161.6      174.2      191.8
short term liabilities
Net profit/operating income            7.7       11.9       17.2
Net profit/total assets                7.6       12.6       18.0
Net profit/equity                     12.1       18.5       24.8
Total liabilities/total assets        37.2       31.9       27.2
Total liabilities/equity              59.0       47.0       37.0

Source: Rodamas/Data Consult
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Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:May 27, 2003
Words:1499
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