Ivomas too expensive, analyst said

JAKARTA: Number of analysts view the share price for the initial public offering of PT Salim Ivomas Pratama Tbk is too expensive. The company offers its market-debut price at IDR1,060-IDR1,700.Both Head of PT Citi Pacific Indonesia's Research Unit Hendri Effendi and PT Anugrah Sekurindo Indah's analyst, Viviet S. Putri, labels the PT Indofood Sukses Makmur Tbk subsidiarys IPO as high IPO.As Putri said, regarding the initial price, Ivomas' PER is between 10-16 times when PER for related business is 13 times.Its too high and the price range is too wide. Usually, PER of such industry is below 10 times, said Effendi.Meanwhile, the recently listed shares of PT HD Finance Tbk rose 15% yesterday to IDR230 from its initial price of IDR200 per share. HD Finance released 460 million shares or 29.87% from company's total capital to public.Other potential issuer, PT Buana Listya Tama Tbk, plans to release 6.65 billion shares, or below the initial target release of 7.26 billion shares. The company is projected to pocket US$120 million and US$66 million warrant from that action. (T05/NOM)