Indonesia Power will soon appoint underwriters for its IPO

PLN's subsidiary Indonesia Power will soon appoint the underwriters for the company's initial public offering (IPO) which would be launched later this year to raise fresh funds for its expansion programs, Suara Karya reported on Wednesday.

The company's president director Abimanyu Suyoso said in Jakarta on Tuesday that the underwriters for the IPO should be named before the company began the IPO campaign in the next few months.

"As part of the IPO preparation, we will conduct a road show in Singapore, Hong Kong and the United Kingdom to promote the IPO to foreign investors," he said, adding that the company expected to raise about Rp 4.4 trillion from the public offering.

Indonesia Power which operates PLN's power plants in Java and Bali, would also seek longer term contracts both for the sales of the electricity and for the supply of gas and coal for its power plants so that investors could judge the long term prospect of the company.

"At present, most of the contracts last for a year. With the IPO, we would seek longer term contracts," he said. "With the longer term contracts, the prospect of the company could be better assessed," he added. (*)