Bus company Lorena hires Valbury as IPO underwriter

JAKARTA: Inter-province bus company PT Eka Sari Lorena Transport said it has appointed PT Valbury Asia Securities as an underwriter for its initial public offering (IPO) in October.Eka Sari Lorena, owner of Eka Sari Lorena Transport, said the expected proceeds from the IPO remains unchanged at IDR150 billion after the sale of 20% of the company."We are ready for an IPO in October this year. Besides Valbury, there are also other underwriters for the IPO," she said, last week.The company is part of the Lorena Group and intends to become a publicly-listed company in order to be more transparent in running its business. The Company will also remove its status as a mere family business when the IPO completes.Originally, the IPO of Eka Sari Lorena Transport had been scheduled for last year, but it had to be postponed until 2011 and it certainly will be held in October.Separately, Benny Andrewijaya, a director at Valbury Asia Securities, said he is now conducting a due diligence on Eka Sari Lorena Transport."Currently, we are still listed as an advisor for Lorena's IPO, to work on the internal corporate restructuring. We have not yet been appointed as an IPO underwriter for them, but if Lorena intends to do so, we are definitely interested," he explained.He said Valbury will also consider Lorenas management commitment on the IPO plan."Lorena is a good company. They have a clear market segment, a large fleet and huge land bank as assets, said Benny.Lorena Group currently has more than 500 units of Mercedes-Benz buses that serve transportation services in 60 cities across Indonesia.Meanwhile, similar rival PT Cipaganti Citra Graha, which provides transportation services and heavy equipment procurement, declined to give details on its planned IPO that is aimed to raise IDR1 trillion.Cipaganti has rescheduled its IPO from the original plan in the first half 2011, Director Tommy Teguh Susetio said."There are some things that must be prepared. I can not yet reveal the details of the IPO," said Tommy. (T03/NOM)