Prime Petroservices cancels IPO plan

PT Prime Petroservices has cancelled its initial public offering (IPO) plan amid the collapse of the world stock markets, Kontan reported on Tuesday.

Prime which received an effective registry statement from the Capital Market Supervisory Agency (Bapepam) late last month and began offering its shares to the public last week has been forced to cancel its IPO plan amid the meltdown in the local and overseas stock market.

Ahmad Badrun, the director of PT Madani Securities which handled Prime?s IPO, said that his company had delayed the listing of Prime?s shares on the Indonesian Stock Exchange (IDX) at least until the next six months.

?We have begun offering the shares on Wednesday, last week, but we later asked Bapepam to cancel the IPO plan following the suspension of the Indonesian stock market later on the day,? he said. The shares were originally scheduled for listing on next Thursday, he said.

According to the company?s initial plan, Prime would 1.78 billion shares or about 30 percent of its entire shares to the public. The shares would be sold at Rp 205 each in the public offering.

PT Prime Petroservices through its subsidiary PT. Indogas Kriya Dwiguna plans to supply some 300,000 tons per annum of liquefiad natural gas (LNG) from Kangean Block, offshore East Java to three power plants operated by PLN?s subsidiary PT. Indonesia Power in the tourist island of Bali.(*)