Credit Suisse was the international bookrunner while Bahana and Danareksa were domestic leads.
The Ministry of State-owned Enterprises launched the 185.8 million share sale, raising $225 million, as part of an effort to help finance the ever wobbly state budget. The block was about 15 days of the three-month average daily trading volume.
Indonesia has been running budget deficits since the Asian financial crisis. This year, the government approved a shortfall of 1.3% of gross domestic product for the year û but it is trying to plug that hole by selling government assets. Given that the government had owned 59.4% of the gas distributor (the stake is now down to 55.3%), it was an obvious company to sell down. PGN, after all, had posted a net profit of $95.14 million last year, up 82% from a year earlier, making it an attractive company to sell to potential investors.
Indeed, bankers close to the deal say the sale was comfortably oversubscribed on Wednesday evening after the launch. Minimum price for the bookbuild was 11,000 rupiah, which was a 2.65% discount of WednesdayÆs closing share price of 11,300 rupiah each. Although not confirmed yet, it is expected that pricing will come in at around 11,300 or a 0% discount to the closing price.
Domestic demand accounted for approximately 25% of the total, while the balance was evenly split between Asian and European/US offshore accounts. The stock went to an even mix of new and existing holders.
The Jakarta-based companyÆs shares were suspended from trading on Thursday but are expected to trade today (December 15).
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