Medco gets $300m via secondary offering<\/p>\n
Leony Aurora, The Jakarta Post\/Jakarta<\/p>\n
PT Medco Energi Internasional, the country's largest private,
\nlocally controlled oil and gas firm, has raised some US$300
\nmillion with its divestment of more than a billion shares at
\ndiscounted prices, prompting a fall in its market price.<\/p>\n
The offering included some 899 million common shares, which
\nwere sold at Rp 2,850 (29 U.S. cents) per share -- 25 percent
\nlower than the closing price of Rp 3,775 on Thursday -- the
\ncompany said in an emailed statement on Friday.<\/p>\n
The rest of the stocks, amounting to almost 135 million common
\nshares, were offered as global depositary shares (GDS) at $14.50
\neach.<\/p>\n
One GDS is equivalent to 50 common shares.<\/p>\n
The common shares are listed on the Jakarta Stock Exchange,
\nand the GDSs, when issued, are expected to be listed and traded
\nin Luxembourg, the statement said.<\/p>\n
Through the secondary offering, founding family Panigoro's
\nshareholdings were reduced to 54.5 percent from the previous 85.5
\npercent. The oil and gas firm's free float shares, which can be
\ntraded by the public, were raised to 38 percent from 5 percent
\nbefore the divestment.<\/p>\n
Merril Lynch International and Credit Suisse First Boston
\n(CSFB) assisted the offering as joint global coordinators and
\nbookrunners.<\/p>\n
Medco's share price took a nosedive after the pricing
\nannouncement to Rp 3,200 on Friday, 15.2 percent lower than the
\nclosing price the previous day -- the biggest loss in six years,
\naccording to Bloomberg data.<\/p>\n
Earlier this year, the Panigoro family returned as the
\nmajority shareholder in Medco when it bought a 60 percent stake
\nin New Links Energy Resources, which then controlled 86 percent
\nof the company.<\/p>\n
The founding family purchased the shares for about $340
\nmillion from Thailand's PTT Exploration & Production Pcl. and
\nCSFB.<\/p>\n
Medco reported an audited net income of $19.9 million in the
\nfirst quarter of the year, slightly lower than the $20.1 million
\nbooked in the same period last year, due to higher costs and
\ntaxes.<\/p>\n
Rising oil prices boosted Medco's net revenues by 18 percent
\nin the three months ending March 31 to $130.5 million from $110.6
\nmillion in the corresponding period the previous year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/medco-gets-300m-via-secondary-offering-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}