Government will soon name underwriters of PGN?s IPO

The State Ministry for Supervision of State Enterprise is currently completing the final stage of the initial public offering (IPO) of the state owned gas distribution company PT Perusahaan Gas Negara (PGN) which will be launched later this year, Koran Tempo reported on Monday.

Deputy Minister for Supervision of State Enterprises Mahmuddin Yasin said in Jakarta last week that his office was currently in the process of selecting underwriters for PGN?s IPO and several other supporting agencies such as the legal consultant.

?At present the government is selecting 14 of securities companies that have applied to underwrite PGN?s initial public offering,? he said, adding that the ministry would likely accept the recommendation from the government?s privatization team to sell 15 percent of PGN shares in the IPO program.

Earlier report said that among of the foreign securities firms or investment banks participated in the selection process included Credit Suisse First Boston, Merrill Lynch Indonesia, UBS Warburg, ABN Amro Asia Securities, ING Securities, JP Morgan Securities Indonesia, and BNP Paribas Peregrine.

Local firms include BNI Securities, Mandiri Sekuritas, Trimegah Securities, Bahana Securities, and Danareksa Sekuritas.

PGN?s financial director Djoko Pramono had said that PGN would likely sell about 20 percent or 30 percent of its shares to the public in the IPO. The shares to be sold will come from the government?s shares and new stocks. (*)