PLN subsidiary eyes Rp 300 billion from IPO

State utility company PT PLN plans to float the shares of its subsidiary PT Prima Layanan Nasional Enjiniring (PLN Enjiniring), an engineering, procurement and construction (EPC) firm, on the Indonesian Stock Exchange, with an aim to raise Rp 300 billion in fresh cash.

The company has appointed PT Mandiri Sekuritas as the underwriter of the planned shares sale (initial public offering/IPO). ?It is true that we are clearing the way for PLN Enjiniring to conduct an IPO,? said Nasri Sebayang, Director for Planning and Technology at PLN.

Nasri said PLN opts to float PLN Enjiniring as the first subsidiary firm to go public as the company is among PLN subsidiaries which are ready to list its shares. Kontan daily quoted unnamed source that PLN is planning to float 20-30 percent of PLN Enjiniring shares by the end of this year.

Nasri however declined to disclose the timetable for the IPO plan. PLN Enjiniring has assets of about Rp 1 trillion. (*)