Pupuk Kaltim plans IPO

Pupuk Kaltim plans IPO

JAKARTA (JP): State-owned fertilizer producer PT Pupuk
Kalimantan Timur (Pupuk Kaltim) plans to sell a portion of its
shares to the public to raise funds for expansion.

Company President Syaiful Amir said yesterday the firm was
ready for the initial public offering (IPO) plan but was awaiting
government approval.

"We don't know whether we will receive permission or not," he
said.

He said the offering would help the company enter the
international fertilizer market, which had become increasingly
competitive in the last few years.

The company would also be encouraged to operate more
efficiently, he added.

Syaiful said part of the proceeds would go to the government
as Pupuk Kaltim's sole shareholder.

He said the company's management was unlikely to change due to
the offering.

The Ministry of Industry and Trade's Secretary General, Aidil
Juzar, said Pupuk Kaltim was the firm most prepared to go public
of those under the ministry's supervision.

"But permission for this depends on the Minister of Finance as
the company's nominal shareholder," he said. (pwn)