OSK borer Rp2 trillion in underwriting services

Saturday, 24/10/2009
OSK borer Rp2 trillion in underwriting services

JAKARTA: PT OSK Nusadana Securities Indonesia targets the value number of underwriting bonds and stocks that will increase to Rp2 trillion next year, or twice the value of the guarantee until this year that predicted around Rp1 trillion.

President Director OSK Nusadana Securities Halim Susanto said the company has become a securities underwriter of corporate debt obligations of PT Salim Ivomas Pratama and PT Indofood Sukses Makmur Tbk this year. In addition the company also became the underwriter medium-term debt securities (medium term notes/MTN) PT Astra Sedaya Finance, a multifinance company.

"The composition of underwriting next year about 60% -70% bonds, the remaining is from underwring shares issuence," he said to the press yesterday.

He was optimistic that the investment conditions and underwriting next year, especially shares, will be better next year considering constrained financial market conditions are less conducive.

He said the company also wants into the ranks of the top five in domestic securities in the next 5 years. One way to achieve it, Halim added, by adding new branches to increase the number of customers.

Companies, he said, budgeted funds for Rp2, 5 billion to Rp7 billion to set up 5-10 new branches next year. Company needs funds to build a new branch office around Rp500 million to Rp700 million.

Halim said the establishment of branch offices is to increase the number of corporate customers from around 1700 to 3000 account accounts.

"There are still many potential customers in Indonesia, mostly because it has not educated to invest."

He estimates that the current capital market customers numbered only about 2 million people. According to him, the number of potential people who could be invited to invest up to 10 times or about 20 million people.

He also said the company plans to integrate its trading system to be electronically (online trading) next year so that customers can transact more easily. Convenience, he added, is expected to make potential customers interested in transacting through OSK Nusadana.

Companies, he said, also intended to simplify fee trading shares in several exchange only one client's account in one branch office in a country. Thus, he said, customers do not need to open an account in another country to buy securities in investment destination countries affiliated with the company.

However, he said, the plan requires the approval of socialization and exchange some authority.

Company, he said, is seeking a cooperation with three banks for mutual funds marketing that launched by company's subsidiary, PT Nusadana Asset Management.

Director & Chief Operating Officer of OSK Nusadana Securities Chan Kong Ming added in the next month the company will establish a branch office in Medan.

Currently, 51% ownership of a company owned by OSK Investment Bank Bhd from Malaysia. OSK Investment Bank has 60 branch offices in the country of origin as well as Singapore, Hong Kong, and Shanghai. (21)