Wednesday, August 27, 2008

9 Securities fight for being underwriter for Krakatau Steel IPO

There are at least nine securities companies fighting to become the underwriter of the initial public offering (IPO) of PT Krakatau Steel.
Some securities companies establishing alliances include PT Bahana Securities with PT Mandiri Sekuritas, Citigroup with PT Indo Premier Securities.
Besides, there are also Credit Suisse, PT DBS Securities Indonesia, CLSA, CIMB GK Securities Indonesia, and PT Danareksa Sekuritas taking part here. In the IPO which is scheduled on semester II/2008, KS targeted to tap IDR3-4 trillion fund. This will be used to cover the total of IDR1.5 billion budget within the next five years.
Most of the fund will be allotted for the revitalization and steel processing factory modernization. Besides, the company will also build new factory for the commodity processing.
KS has appointed CIMB GK Securities as the finance consultant for the IPO preparation. IPO is scheduled to be one in October. However, the Parliament has yet to give their approval which in a way brings about the delay of the IPO of KS and also PTPN and PT Rekayasa Industri.
The Parliament has yet to approve the KS IPO this year despite the undergoing underwriter selection for the corporate action here.

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