Sun Hung permit frozen

Sun Hung permit frozen

JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam) has frozen the operating license of PT Sun Hung Kai Securities Indonesia.

Bapepam said the company had failed to meet its obligation in underwriting PT Miwon Indonesia's initial public offering.

The head of Bapepam's legal bureau, I Nyoman Tjager, said in a statement Wednesday night that the agency had also frozen the working licenses of six executives at Sun Hung Kai. They included three brokers, two stock underwriters and one investment adviser.

The decision to freeze Sun Hung Kai's operating license was taken after a closed meeting between Bapepam officials and executives of Sun Hung Kai and Miwon.

Executives of both Miwon and Sun Hung Kai declined to comment on Bapepam's decision.

Nyoman said Bapepam would restore Sun Hung Kai's license, and the working licenses of its six executives, when the company fulfills its obligation to Miwon.

Sun Hung Kai acted as lead underwriter for Miwon's public offering late last month. It underwrote 21.55 million shares of Miwon's 25 million offered shares on a full commitment principle.

Only six million of the offered shares were sold but Sun Hung Kai failed to absorb the unsold shares.

On the listing day, Oct. 31, Miwon shares dropped to Rp 1,450 (US$0.65) from its initial price of Rp 1,950.(rid)