PGN IPO underwriters appointed
Monday, September 1 2003 - 09:39 AM WIB
State gas distribution firm PT Perusahaan Gas Negara (PGN) has named state-owned PT Danareksa Sekuritas, CSFB and ABN Amro Asia Securities as joint-lead underwriters for its initial public offering scheduled for November, Minister of State Enterprises Laksamana Sukardi told reporters Monday.
The government owns 100% of PGN and is planning to sell up to 49% of its stake to help finance the state budget deficit.
PGN also needs extra cash to finance its gas pipeline projects in Java and Sumatra that are worth around $1 billion. The government will hand over part of the IPO proceeds to help PGN fund its expansion.
Analysts expect the IPO to see good demand due to PGN?s strong position in the gas distribution and transmission markets.(*)