Oct 24, 2010

Krakatau Steel demand nigh to 6 folds

The State-Owned Enterprises Ministry, underwriters, and PT Krakatau Steel (Persero) Tbk last friday had determined the final price of the IPO.
Secretary to the SOE Ministry Mahmuddin Yasin confirmed that the market demand for the stocks is nigh to 6 times oversubscribed, or equal to Rp12 trillion. At what price Krakatau Steel stocks will be offloaded? Please login here.
Krakatau Steel plans to dispose 3.16 billion shares or 20% during initial public offering (IPO) scheduled on November 10 2010. The company, based on the IPO prospectus published today, will use 35.8% of the shares sale proceed to support capital expenditure regarding to revitalization and output capacity expansion.
Krakatau Steel is aiming to utilize 24.2% of the proceed as working capital. 
The company intends to use 25% of the proceed to finance 388 hectares area for integrated steel plant rolled out with POSCO.

Disclosure: No position at the stock mentioned above.

Print This Article

No comments: