Elnusa share price set at Rp 330 to Rp 425 for initial public offering

Ika Krismantari, The Jakarta Post, Jakarta

State owned oil and gas firm Pertamina's subsidiary PT Elnusa expects to tag a price range of Rp 330 (3 U.S. cents) to Rp 450 per share for its initial public offering by the end of this month, an official said.

Elnusa president director Eteng A. Salam said the company would let approximately 1,460 billion shares go, or 20 percent of its total shares, from Jan. 25-29.

He added the shares would be listed on the Indonesian stock exchange on Feb. 4.

The company has appointed Mandiri Sekuritas as the lead underwriter for the IPO.

It is estimated the company would obtain up to Rp 6.2 billion in proceeds, with 40 percent channeled to support its main business in the upstream sector, 15 percent allocated to the expansion of its subsidiaries, 20 percent to a refinancing loan and 25 percent set aside as capital.

According to data compiled by The Jakarta Post, last year, Elnusa revenue rose 12 percent to Rp 2 trillion from Rp 1.87 trillion it posted in the previous year, while its net profit increased by 27 percent to Rp 110 billion.

After the IPO, Pertamina will still be the majority shareholder of the company with a 41.10-percent share, from a previous 51.38 percent.