Energi Mega changes allocation of IPO funds

Oil and gas company PT Energi Mega Persada, which recently listed its shares on the Jakarta Stock Exchange, has changed the allocation of funds raised during the company's initial public offering (IPO) in June, Investor Daily reported on Thursday.

The planned change in the allocation of the IPO funds was contained in the letter sent by the company's president director Rannier Latief to the JSX management on Wednesday. In the letter, Rannier said that the change in the use of the IPO funds would be proposed to shareholders during an extraordinary shareholders meeting in July 30.

Energi Mega raised a total of Rp455.48 billion during the IPO. In its prospectus, the company plans to use 40 percent of the IPO funds for the exploration of Malacca Strait oil block, and the other 60 percent for the exploration of the Brantas oil and gas block. Mega, through its subsidiary, has 60.49 percent interest in the Malacca block, and 50 percent interest in the Brantas block. (*)