The IPO of KS still sparked controversies. Some said that the price set by the government at Rp850 per share was too low. However, the government and the underwriter were firm in their opinions that the price was set based on the reasonable valuation
Many quarters have urged state-owned steel firm PT Krakatau Steel (KS) to explain to the public its Initial Public Offering (IPO) where it was alleged to have sold its share at lower price.
State-Owned Enterprises Minister Mustafa Abubakar previously said Krakatau Steel aimed to raise between Rp 4 trillion and Rp 5 trillion from the IPO, which is scheduled to be launched on Nov. 11
Marzuki told the press at the parliament building here on Wednesday that one of the ways to solve the polemics was to ask explanations from PT KS management and the state-owned enterprises (BUMN) minister regarding the questions over the sale of the firm`s shares.
Capital Market observer Dany Daruri said that the government had better explain to the public the IPO of KS`s 20 percent shares. This is to prevent a process that could cause losses to the state but on the other hand benefit others a lot from this process.
In order to eliminate the black market, one of the ways that could be taken is to raise share prices. "This could still be carried out until November 9, because at present it is still the stage of payments, not yet in the recording period. Raising the price will of course deal a blow on the black market," he said.
ANTARA & KRAKATAUSTEEL SITE