PGN?s IPO price will be decided in November

The management of state-owned gas distribution company Perusahaan Gas Negara (PGN) and the government as the sole owner of the company would decide on the price of the company's planned initial public offering (IPO) in early November, Bisnis Indonesia reported on Friday.

?The pricing of the share will be made on November 5 after the completion of the company?s road show that will be carried out in October,? PGN?s president director W.M.P Simandjuntak told the daily.

Prior to the official launch of the shares to the public, the company would carried out promotional activities that would include road shows to major financial centers in Asia, Europe and the United Sates.

Simanjuntak said that the company had proposed the government to sell both old and new shares in the IPO so that part of the IPO proceeds could be used to finance the company?s gas pipeline projects. ?If the size of the IPO is 30 percent, then 10 percent of it should comprise of new shares,? he said.

He said that the proceeds from the sale of the new shares would be used to finance a gas pipeline project linking South Sumatra, Lampung and Cilegon in Banten. This project is part of several gas pipelines to be built by PGN. (*)