Govt to assign underwriter for Indosat soon: Ministry

JAKARTA (JP): The government will appoint this week an international financial firm as the lead underwriter of PT Indosat's public offering to be launched both on local and overseas markets later this year.

Yusuf Anwar, the secretary general of the Ministry of Finance, said yesterday that at least 10 international securities firms are competing to become the lead underwriter for Indosat.

PT Indosat is the state-owned international telecommunications monopoly. As one of the country's most profitable business entities, it is expected to be the first state-owned company to offer shares on an international capital market.

"The selection is underway and the winner will be announced on Friday," Yusuf said.

The interested securities companies and investment banks include Solomon Brothers, Merrill Lynch, Yamaichi Securities and CS First Boston.

Yusuf, also the chairman of the committee for the preparation of state-owned companies's partial privatization, said the bidders held a presentation of their underwriting plans early this month as part of the requirements proposed by the committee.

Around 35 percent of Indosat's shares will be sold to the public as part of the government's partial privatization program and the shares will be listed on local and international stock exchanges.

Indosat's listing will be made on either the New York or London stock exchange.

A number of state-owned companies, including the national flag carrier Garuda Indonesia, PT Telekomunikasi Indonesia (Telkom), the company responsible for domestic telecommunication services, and subsidiaries of the State Electricity Company and oil company Pertamina, are being prepared to follow Indosat's move. (hen)