Monday, October 29, 2007

Jasa Marga Deal

Big institutions, such as Jamsostek, Telkom Pension Fund, and Schroder Investment Management Indonesia are deal with goverment to boost the price to IDR1,700 in a bid to secure Jasa Marga's stock price movement in the secondary market.

The IDR1,700 price reflects an estimate of the 2008 price to earning ratio (PER) at 26.6 times, far higher than Plus Expressway Bhds PER of14.64 times. Based on the initial price, the market cap of Jasa Marga is only US$1.27 billion, far below US$4.9 billion in Plus's market cap.

Most of the funds raised from Jasa Marga's IPO (90%) are going to be spent as equities in its subsidiaries in Bogor Ring Road, Gempol-Pasuruan, Semarang-Solo, JORR W2 Utara, and other toll roads, while the remaining 10% will be spent to improve the capacity of the existing toll roads.

The underwriters of Jasa Marga's IPO are PT Bahana Securities, PT Danareksa Sekuritas, and PT Mandiri Sekuritas, while the international lead arrangers are Credit Suisse and UBS Securities.

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