Oct 11, 2010

Krakatau Steel to sell 3.16 bio shares

Indonesia's largest steel manufacturer PT Krakatau Steel (Persero) Tbk 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.
The state-owned steel company will use the remaining proceed to put more capital in two subsidiaries dubbed PT Krakatau Daya Listrik and PT Krakatau Bandar Samudera.
The company has mandated three lead IPO underwriters PT Bahana Securities, PT Danareksa Sekuritas, and PT Mandiri Sekuritas in alliance with two global coordinator Credit Suisse and Deutsche Bank.

Disclosure: No position at the stock mentioned above.
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