Indonesia Power to sell 10 percent of its shares to the public

Indonesia Power, one of subsidiaries of state owned electricity company PLN, will sell about 10 percent of its shares to the public during the company's initial public offering (IPO) later this year, Investor Daily reported on Wednesday.

Indonesia Power's President Director Abimayu said in Jakarta on Tuesday that the IPO would be launched during the first semester of this year in line with the recommendation made by the company's shareholders during a recent meeting.

"The percentage of shares to be sold to the public could be higher than 10 percent depending on the market situation during the IPO," he said, adding that the company would make a thorough preparation so that the company's shares would become among the blue chips on the stock exchange.

Indonesia Power, which operates a number of power plants, provides about 46 percent of power supply in Java, Bali and Madura. The company is estimated to have total assets of about Rp 54 trillion.

"We are still calculating the net profit for 2004. We are optimistic that the profit in 2004 would exceed the initial target of Rp 1 trillion," Abimayu said as quoted by the newspaper. He added that Indonesia Power booked a profit of Rp 1.5 trillion in 2003. (*)