Indonesia Power to float shares in local stock exchange

PT Indonesia Power, a subsidiary of state owned electricity company PT PLN, will sell a portion of its shares through an initial public offering (IPO) in 2005 to raise fresh funds to finance the company's expansion plan and to strengthen its capital structure, Suara Karya reported on Wednesday.

Indonesia Power's president director Abimanyu Suyoso said in Jakarta on Tuesday that the company had yet to decide the amount of shares to be sold in the IPO but he estimated that it would be below 30 percent of the total shares.

"In line with the recommendation made during the annual shareholders meeting, we will carry out the IPO next year," he was quoted as saying. He added that shares would be listed on the Jakarta Stock Exchange (JSX). (*)