PGN share price may reach Rp 1,800 on the first day
Saturday, December 13 2003 - 12:54 AM WIB
Investor Indonesia daily reported on Saturday that share price could reach Rp 1,700 on the first day.
The company will start trading its shares on the Jakarta bourse at a price of Rp 1,500 each and even some dealers expect the share price to increase to Rp 1,800 at Monday's close.
PGN’s IPO of a 39 percent stake between Dec. 8 to Dec. 10, was 8.6 times oversubscribed, said PGN's president Washington Simanjuntak.
An official with PT Danareksa Sekuritas, one of the lead underwriters of the PGN IPO, said that half of the shares were allocated to foreign investors. The government expected to raise $298 million from he PGN's IPO.
"In the gray market, PGN shares are currently trading at Rp 1,600-Rp 1,650 per share," a trader with Mandiri Sekuritas told Dow Jones Newswires.
Another analyst Eddy S. Widjojo from PT Ciptadana Sekuritas also said the same thing.
“If the share reaches Rp1,600-Rp1,700 in the grey market, it reflects the price of PGN on the first day trading,” Eddy told Investor on Friday.
The listing of PGN's shares is also expected to further boost the Jakarta Stock Exchange Composite index, which has risen more than 50 percent since the start of the year on improved foreign investors confidence in the country, market participants said.
"PGN has some good factors that can attract investors to buy the shares," said Norico Gaman, an analyst with BNI Securities.
PGN's sound finances and positive sentiment in the broader Indonesian market are points in PGN's favor, he said.
PGN, which controls the transmission, distribution, wholesale and retail sale of natural gas in Indonesia, expects revenue this year to rise by 97 percent to Rp 8.43 trillion, up from Rp 4.27 trillion in 2002 due to an increase in sales volume.
It will become the first such company to list on the Jakarta bourse. (*)