Energi Mega to raise RP 350-400 billion from IPO

Oil and gas company PT Energi Mega Persada will issue about 7 billion to 8 billion shares in the middle of the month through an initial public offering, The Jakarta Post reported quoting Dow Jones Newswires in its Wednesday edition.

Chief Financial Officer Nazamudin Latief told Dow Jones Newswires that the company expects to raise Rp 350 billion ($1=IDR8,490) to IDR400 billion, which will be used to develop new onshore oil and gas fields in East Java, and Kondur Island, a small island off Sumatra.

It has named PT Danatama Sekuritas as the lead underwriter for the offering.

"The number of shares we will offer to the public will represent between 25% and 30% of the company's total shares," he said.

Energi Mega Persada currently produces 12,000 barrels of oil, and 80 million cubic feet of natural gas per day, Latief added.

The company will be the second oil and gas company to be listed on the local bourses. Currently, the only energy company listed on the Jakarta and Surabaya stock exchanges is PT Medco Energi International.(*)