PT Medco to offer shares to the public

JAKARTA (JP): PT Medco Energi Corporation, an oil and natural gas drilling, exploration and production company, will offer 20 million new shares equaling 30 percent of its total common stocks to the public in mid-July.

The company's president, Hertriono Kartowisastro, told reporters in a press conference here yesterday that the company expects to generate about Rp 100 billion (US$46.32 million) from the share issuance.

Hertriono said the funds from the share offering will be used to finance Medco's expansion program and to strengthen the company's working capital.

The company will hold a public expose next month as well as an international road show in Singapore and European countries, Hertriono said.

The company's director of finance, Sugiharto, said the new shares will likely be listed on the Jakarta and Surabaya stock exchanges in mid-August.

Sugiharto said the company is now owned by seven firms, but he declined to give further details pending next month's public expose with securities analysts and brokers.

Sugiharto said Medco has appointed Niaga Securities and Reka Prima Sekurita as its lead and co-lead underwriters, respectively.

Sugiharto said Medco will be the first oil-based company to be listed on the stock markets here.(02)