PLN unit plans to raise Rp4.4t

PLN unit plans to raise Rp4.4t

JAKARTA: PT Indonesia Power, a unit of Indonesia's state utility, plans to raise as much as Rp 4.4 trillion (US$439 million) selling shares in the nation's biggest initial public offering.

Indonesia Power will sell new shares and parent PLN will sell part of its stake in the company, said Abimanyu Suyoso, president of Indonesia Power.

The proceeds will be used to build power plants. The shares are expected to be sold in the first half of next year. Investors will be offered about 10 percent of the company's stock.

Indonesia Power plans to add 630 megawatts of capacity a year, Suyoso said. The company, which expects demand to rise 7 percent next year, has the capacity to generate 9,000 megawatts of electricity. -- Bloomberg