Oct 22, 2010

Krakatau Steel IPO demand Rp8 trio

Demand on PT Krakatau Steel (KS) shares is estimated to reach Rp7 trillion-Rp8 trillion, with 60% demands come from local investors and 40% from foreign investors.
KS President commissioner Zacky Anwar Makarim confirmed that investors demonstrate high response on the company’s initial public offering (IPO), as the result of the ongoing road show. “The result of road show, both domestic and abroad, is satisfying,” he said today.
He explained the possibility that the share will be offered at the highest price, but the exact price will not be announced until next Monday. The investors showing interest in the shares include Pohang Steel and Iron Co (Posco).
“Some foreign investors bid from Rp800 to Rp1,000, while local investors are willing to pay more.”
In the IPO, KS is planning to issue 3.15 billion shares, equal to 20% of 30% shares to be released by the company.
KS is offered with price in the range of Rp800-Rp1,150 per shares, with estimated price earning ration (P/E) reaching 9 to 11 times. The company has appointed PT Bahana Securities, PT Danareksa Sekuritas, and PT Mandiri Sekuritas as the underwriters.
The company will complete the listing on November 10, 2010 and its road show to Asia, Europe, and US has been running from October 13.

Disclosure: No position at the stock mentioned above.  

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