PT Telkom cuts its share issue<\/p>\n
JAKARTA (JP): State-owned domestic telecommunications firm PT
\nTelkom, which will conduct its local and overseas primary share
\noffering tonight, yesterday cut its offering price and downsized
\nits issue.<\/p>\n
Telkom said in a statement last night that it had set the
\nprice of its shares at Rp 2,050 (90 U.S. cents) each on domestic
\nmarkets and at US$18 per American Depository Share (ADS) on
\noverseas markets.<\/p>\n
The company initially set the maximum price at Rp 2,800
\n($1.22) per share on domestic markets. Meanwhile, the price of
\nits offered shares on offshore markets was estimated to range
\nfrom $19.50 to $24.50 per ADS.<\/p>\n
One ADS represents 20 ordinary shares.<\/p>\n
Telkom also scaled down its offshore flotation by 57.1 percent
\nto 30 million ADS from its initial allotment of 70 million ADS.
\nHowever, it did not change the size of its domestic issue.<\/p>\n
The company plans to make the primary offering of its shares
\non the London, New York, Jakarta and Surabaya stock exchanges
\nsimultaneously today.<\/p>\n
The Jakarta and Surabaya stock exchanges will have a night
\ntrading session from 9:30 p.m. (14:30 GMT) until 11:30 p.m.
\n(16:30 GMT) tonight to launch the debut at the same time as New
\nYork.<\/p>\n
The state-run television station TVRI will broadcast
\nnationwide Telkom's primary offering, believed to be Indonesia's
\nlargest public offering, live from New York and Jakarta.<\/p>\n
Telkom said recently that its domestic offering of 1.16
\nbillion shares, or 12.5 percent of its enlarged capital, was
\noversubscribed by 8.17 percent.<\/p>\n
The government initially hoped to raise between $2.5 billion
\nand $3.1 billion by offering 12.5 percent of its shares on the
\nlocal markets and 15 percent on overseas markets.<\/p>\n
Securities analysts speculated that the sudden cut in Telkom's
\nissue was driven by overseas investor interest in the company's
\nshares was \"cold\".<\/p>\n
They said the fate of Telkom's listed upon their flotation
\ntonight was likely to have an impact on the government's
\nprivatization plans for the future.<\/p>\n
They added, however, that neither the government nor global
\nthe offering's coordinators could be blamed for the poor timing.<\/p>\n
They said the market was still haunted by state-owned PT
\nTambang Timah, whose price fell some 17 percent from its initial
\noffering price of Rp 2,900 ($1.30) after only five days of
\ntrading.<\/p>\n
The Jakarta Stock Exchange's composite index hit a seven-month
\nlow yesterday, falling to 467.35 points, as compared with a 1995
\nhigh of 519.53 in August. (rid)<\/p>",
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