he country's largest steel manufacturer PT Krakatau Steel booked 190.16% net income jump, amounting Rp997.73 billion during the first half of 2010, compared to the net loss in the first half of 2009, reaching Rp1.1 trillion.
A source familiar with the matter, as reported by Bisnis.com, said the jump was due sales growth by the 14.97% or Rp1.17 trillion from Rp7.82 trillion to Rp9 trillion and the decline of cost of good sold in the same period.
The state-owned enterprises’ cost of goods sold declined by 15.5% or Rp1.3 trillion from Rp8.4 trillion to Rp7.1 trillion.
The company plans to offload 19.61% of its shares to public in an initial public offering as it eyes Rp3.3 trillion fresh funds from such corporate action.
Three state-owned securities companies namely PT Danareksa Sekuritas, PT Mandiri Sekuritas, and PT Bahana Securities will arrange Krakatau Steel IPO.
Actually, the company plans to list 30% of its shares and will derive Rp4 trillion-Rp5 trillion fresh funds but it will hold 19.61% of initial offering.
The company also plans to list its three subsidiaries by next year. This corporate action tails the similar public listing held by PT Pelat Timah Nusantara Tbk in the end of 2009.
Disclosure: No position at the stock mentioned above.
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