Destinasi to sell shares in IPO to expand tourism business

The Jakarta Post, Jakarta

Travel company PT Destinasi Tirta Nusantara plans to go public early next year and is hoping to raise around Rp 117 billion (US$12 million) to help finance expansion.

President director Dharma Tirtawisata said the company would offer 335 million new shares, or 40 percent of its total stock, at between Rp 270 and Rp 350 each on Feb 11-13.

"We will use 50 percent of the proceeds to develop a number of new branch offices in the eastern part of Indonesia and an office in Thailand.

"Another 25 percent will be used to strengthen our working capital base, and the remaining 25 percent to increase the capital of our subsidiary, PT Duta Chandra Kencana," he told a media conference Monday.

The company now operates in Bali, Lombok, Yogyakarta and Jakarta. Its main business is hosting foreign tourists visiting Indonesia. From January to August, Destinasi served close to 45,000 foreign tourists to Indonesia, 69 percent of whom came from Europe.

Dharma said the issuance of the new shares, which would be listed on the Indonesia Stock Exchange on Feb. 18, would be underwritten by PT Dinamika Usahajaya.

He expected that the planned expansion would increase the company's net profit to Rp 26 billion in 2008.

The company booked a net profit of Rp 5.3 billion during the first eight months of the year, with profit expected to reach Rp 10 billion this year, he said. (ndr)