PGN IPO delayed to December

PGN IPO delayed to December

JAKARTA: Indonesia said it will delay a plan to sell a 30 percent stake of state-owned PT Perusahaan Gas Negara (PGN) to the second week of December from Nov. 21 initially scheduled, a senior government official said.

The government needs more time to prepare for the IPO and seek approval from parliament, Aloysius K. Ro, an official at the state enterprises ministry, said late on Thursday.

He said the government will kick off the IPO roadshow early next month, visiting several cities in Asia, Europe and America.

PGN has said it will sell up to an additional 15 percent stake if the 30 percent stake IPO is oversubscribed.

The government, which owns 100 percent of the gas utility, has named state-owned PT Danareksa Sekuritas, CSFB, and ABN Amro Asia Securities as joint lead underwriters for the IPO.

PGN said its revenue this year is expected to rise to Rp 8.425 trillion (US$997.63 million), from Rp 4.273 trillion in 2002 due to higher gas sales. --DJ