Elnusa set to launch IPO later this month; waiting for approval

The Jakarta Post, Jakarta

Elnusa, a subsidiary of state oil and gas firm PT Pertamina, plans to launch an initial public offering (IPO) of 20 percent in new shares from Jan. 25-29, a company executive said.

Elnusa president director Eteng A. Salam said Friday he could not unveil the total proceeds expected to be gained from the IPO as the share price first needed to be approved by the Capital Market and Non Bank Financial Institution Supervisory Agency (Bapepam-LK).

"However, we expect the proceeds will contribute up to 45 percent of the company's planned capital expenditure of US$100 million for this year," he said.

Eteng said the shares, to be underwritten by PT Mandiri Sekuritas, would be listed on the Indonesian Stock Exchange on Feb. 4.

Elnusa is currently owned 51.38 percent by Pertamina, 46.44 percent by PT Tri Daya Esta, 1.46 percent by PT Danareksa Daiwa NIF Ventura and 0.49 percent by PT Danareksa (Persero). The remaining shares in the company are owned by Elnusa employees.

Eteng said after the IPO, Pertamina may no longer be the majority shareholder as its ownership could decline to 41.10 percent.

Last year, Elnusa revenue rose 12 percent to Rp 2 trillion from Rp 1.87 trillion the previous year, while its net profit increased by 27 percent to Rp 110 billion from Rp 83.03 billion.

In 2008 the company expects to double its net profit to over Rp 200 billion. (nkn)