Jakarta (ANTARA News) - Indonesia`s PT Krakatau Steel Tbk. finally went public on Wednesday with the price of its shares rising 42 percent to Rp1,200 per share at the opening.
State enterprises minister Mustafa Abubakar said as the company`s shareholder he felt relief that the company finally could conduct listing, despite all negative comments from capital market and political observers.
"I think this would become a healthy menu for KS (Krakatau Steel) while the large portion of shares allocated for domestic investors would be able to freshen up KS shares later on," he said.
PT KS conducted the initial public offering at the Jakarta Stock Exchange on Wednesday in the midst of criticism that the company had offered a too low price.
KS`s President Director Faswar Budjang also expressed his joy that the company`s IPO could finally be done after waiting for 15 years.
"We are glad and will maintain the trust of shareholders and investors," he said.
The state-owned steel company sold 15,775 shares at Rp850 per share with a hope of raising up to Rp2.681 trillion with a market capitalization of up to Rp13.408 trillion.
Faswar said he believed PT KS`s performance would continue to improve in line with the increasing demand for steel and the country`s economy that grew five to seven percent.
He said the price of steel in 2011 is expected to rise by 10 to 15 percent from currently at an average of US$700 to US$750 per metric ton.
He said the price would rise because of an increasing demand and economic improvement in industrial countries such as China, European and North American countries.
"In the domestic market the price of steel from June to the end of October has already risen by nine percent from the target of 12 percent until the end of 2010," he said.
PT Krakatau Steel meanwhile has allocated Rp3.3 trillion for capital expenditure in 2011. The funds for it would come from the IPO proceeds and short-term loans from domestic and foreign banks.
"The capital expenditure will be for developing the plant in the next two years," he said.
State enterprises minister Mustafa Abubakar said as the company`s shareholder he felt relief that the company finally could conduct listing, despite all negative comments from capital market and political observers.
"I think this would become a healthy menu for KS (Krakatau Steel) while the large portion of shares allocated for domestic investors would be able to freshen up KS shares later on," he said.
PT KS conducted the initial public offering at the Jakarta Stock Exchange on Wednesday in the midst of criticism that the company had offered a too low price.
KS`s President Director Faswar Budjang also expressed his joy that the company`s IPO could finally be done after waiting for 15 years.
"We are glad and will maintain the trust of shareholders and investors," he said.
The state-owned steel company sold 15,775 shares at Rp850 per share with a hope of raising up to Rp2.681 trillion with a market capitalization of up to Rp13.408 trillion.
Faswar said he believed PT KS`s performance would continue to improve in line with the increasing demand for steel and the country`s economy that grew five to seven percent.
He said the price of steel in 2011 is expected to rise by 10 to 15 percent from currently at an average of US$700 to US$750 per metric ton.
He said the price would rise because of an increasing demand and economic improvement in industrial countries such as China, European and North American countries.
"In the domestic market the price of steel from June to the end of October has already risen by nine percent from the target of 12 percent until the end of 2010," he said.
PT Krakatau Steel meanwhile has allocated Rp3.3 trillion for capital expenditure in 2011. The funds for it would come from the IPO proceeds and short-term loans from domestic and foreign banks.
"The capital expenditure will be for developing the plant in the next two years," he said.
The company`s net profit by September 30, 2010 reached Rp997.753 billion with a revenue reaching around Rp9 trillion
