PGN may sell additional 15% stake more after IPO

PGN may sell additional 15% stake more after IPO

State-owned PT Perusahaan Gas Negara (PGN) plans to sell up to an additional 15 percent stake, if its initial public offering of a 30 percent stake is oversubscribed, PGN's President WMP Simanjuntak told reporters in Jakarta on Tuesday.

PGN plans to hold the IPO between Nov. 12 and Nov. 14.

"In total, we plan to sell up to a 45 percent stake of the company," he said, adding the extra shares will be sold if the IPO is oversubscribed.

He didn't elaborate.

The company said it will determine the offering price Nov. 5.

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

Part of the proceeds from the IPO will be used to narrow the government's budget deficit, while the rest will be spent on PGN's business expansion, Simanjuntak said without elaborating.

PGN said its revenue this year is expected to rise to Rp 8.425 trillion from Rp 4.273 trillion in 2002 due to higher gas sales. -- Dow Jones