PGN to sell 55% stake via IPO

PGN to sell 55% stake via IPO

JAKARTA: Indonesia's state-owned natural gas transporting company PT Perusahaan Gas Negara, or PGN, plans to sell a 55 percent stake in the third quarter of this year through an initial public offering (IPO), a government official said.

The IPO will comprise old and new shares equivalent to 55 percent of the company's enlarged share capital after the offering, Mahmuddin Yasin, a deputy to the Minister of State Enterprises' Affairs, told reporters late Wednesday. The government currently holds 100 percent of PGN. Mahmuddin didn't specify the number of shares to be sold.

The planned sale of the government stake in PGN is part of efforts to raise Rp 8 trillion rupiah (US$888.89 billion) through the sale of state-owned companies this year to help finance the state budget deficit. The government plans to sell stakes in 10 companies this year.

PGN also needs to raise cash to help finance its South Sumatra-West Java gas pipeline project worth $485 million. -- Dow Jones