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)