PGN expects to raise $300 million from IPO

State gas distribution firm PGN expects to raise some US$ 300 million in fresh money from initial public offering it plans to hold in the fourth quarter of next year, according to a company executive.

?We are looking to divest between 25 to 30 percent of our shares to raise US$ 300 million, which we will be used for our expansion programs,? said president director WMP Simanjuntak Tuesday.

He said besides listing at the Jakarta Stock Exchange, PGN might also be listed at Singapore or Hong Kong stock exchanges.

Simanjuntak said for 2002, PGN is targeting net profit after tax of Rp. 400 billion (US$ = Rp. 8,985), higher than last year?s net profit of Rp. 317 billion.

PGN controls gas distribution network in Java and Sumatra. PGN also has 60 percent stakes in PT. Transgasindo, which runs pipeline network connecting Grissik in South Sumatra to Duri in Riau and in the process of constructing pipeline from Grissik to Singapore, which will start to flow gas in September next year.

PGN is also planning to build pipeline network that will connect South Sumatra to West Java, which is scheduled to be completed in 2005-2006. The company is also planning an ambitious 1,700-km pipeline network that would connect gas rich province is East Kalimantan to West Java via East Java.

Simanjuntak also said that in the near future PGN would look to upstream participation in gas exploration projects that are ready to be developed. ?We are looking to acquire minority interest in gas fields which are ready to be developed around Java and Sumatra to secure future supply of gas.?(alex/godang)