PGN share orders cross Rp 3 trillion-mark

The preliminary indications reveal that the share orders for the state-owned gas utility company PT Perusahaan Gas Negara (PGN) have exceeded the RP 3 trillion-mark during the company?s book building process and they are almost double to the what PGN offered during its initial public offering (IPO), Bisnis Indonesia newspaper reported on Monday.

?Total orders for PGN shares during the book building process have exceeded Rp 3 trillon but the exact figure is not yet known as the price of the IPO will be decided on this Wednesday,? one source told the Bisnis.

The Bisnis could not succeed in its efforts to contact PGN officials on Sunday through telephone.

Meanwhile, Bloomberg reported the sale of PGN shares may likely to be reached Rp 3.13 trillion through IPO. Moreover, the IPO during its book building process on last Thursday was oversubscribed by two times.

The IPO received positive response from investors ? both domestic and foreign ? during its roadshow to several Indonesian cities as well as foreign countries.

Government has decided to sell the 39 percent shares of PGN at a price of between Rp 1,300 and Rp 2,100 each through an IPO.

The IPO is expected to raise between Rp 1.2 trillion and Rp 2 trillion in cash.

PGN said in its prospectus that it will sell up to 1.69 billion shares, of which 1.29 billion will be issued in the first stage. The remaining shares will be issued if the first batch is oversubscribed.

PGN has named state-owned PT Danareksa Sekuritas, Credit Suisse First Boston and ABN Amro Asia Securities as joint lead underwriters for the IPO.

The IPO will be open for subscription from Dec 8 to Dec 10, and the stock will be listed on the Jakarta and Surabaya stock exchanges on December 15. (*)