Jun 24, 2010

Below price range, Molindo scraps IPO

Malang-based company PT Molindo Industrial Raya has determined to scrap initial public offering (IPO) because it fails to reach agreement on the IPO price with lead underwriter PT Mandiri Sekuritas.
"Based on initial book building, there were no agreement on the IPO price," said Mandiri Sekuritas's President Director, today.
Molindo and Mandiri had ended road show on June 18 2010 in Hong Kong. They started road show on June 14.
Harry said Molindo received positive demand from foreign investor during the roadshow. Molindo previously offered the IPO price at the range between Rp450-Rp750 per share.
According to him, during book building, investor asked the intial shares at a certain level of price. But, the price was below Molindo's target.
A source familiar with the matter said anchor investor aims to buy Molindo below the price range. "I think this is the reason why Molindo cancels the IPO."

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