Indonesia Power delays its IPO plan to February 2007

PT Indonesia Power has postponed it plan to offer its shares through initial public offering (IPO) to February 2007 from the second semester of 2006. The reason for the delay is due to the lack of conducive condition in the capital market, the Investor Daily Indonesia reported Monday.

Indonesia Power company secretary Lili Tjarli Tahlan said the new management will seek the IPO?s approval from the shareholders during their general annual meeting in January 2007.

?The decision on 'go public' is still waiting for the shareholders meeting in January next year. It is not certain whether the company will issue new shares or sell old shares,? Lili told the Investor Daily over the weekend in Jakarta.

The main purpose of the Indonesia Power?s IPO is to raise money for the building of coal-fired power plants, which is a part of the government?s plan to build coal-fired power plants with a capacity of 10,000 megawatts within three year period.

Indonesia Power is a subsidiary of state electricity firm PLN(*)