Steel maker PT Saranacentral Bajatama has priced its IPO at Rp250-Rp425 a share, entitling the company with the proceed of Rp100 billion-Rp170 billion.
Made Windi Wijaya, President Director of PT Makinta Securities, as quoted by Kontan today. said the price range is reflecting 6 to 10 times of price to earning ration (PER). The similar industry has valuated at 6-7x PER. Saranacentral plans to sell 400 million shares or 22.22% of its enlarged capital. Makinta Securities is the underwriter for the IPO. In the first half of 2011, Saranacentral posted Rp427.9 billion sales and Rp22.42 billion net profit.
Disclosure: No position at the stock mentioned above.
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