PGN asked to name different underwriters for IPO and bond offering

Public investors and stock exchange analysts have called on state owned gas distribution company PT Perusahaan Gas Negara (PGN) to name different securities companies for the underwriters of its initial public offering (IPO) and bond offering, Kompas reported on Wednesday.

Several securities companies including Citigroup, ABN-Amron, Credit Suissse First Boston (CSFB), Merrill Lynch, Morgan Stanley and Danareksa Sekuritas, are currently bidding to become the main underwriter of PGN?s IPO. The same securities companies are also bidding for the place of the main underwriter of PGN?s bond offering.

PGN?s president director WMP Simandjuntak said that the announcement of the winners both for IPO and bond underwriting would be carried separately. But investors and analysts feared that the same company could win the bidding for both PGN?s IPO and bond underwriting even if their announcement would be made separately.

PGN said earlier that the winner for the underwriter of the bond offering would be announced today (Wednesday). PGN plans to issue bond worth US$500 million between August and September this year. The bonds which will be traded in the European stock exchanges would be issued in two stages.

After the offering of its bonds, the company is expected to launch its IPO in October, later this year. ?If the bond offering receives a good response, the value of IPO could be reduced to US$250 million,? Simandjuntak said. (*)