Tuesday, November 16, 2010

The Shares of Krakatau Steel

Last week, the government sold 3,155 Billion shares worth Rp 2,6 Trillion or 20% of the Paid up Capital of PT Krakatau Steel through Initial Public Offering (IPO) at the price of Rp 850 per share.

When it was first listed at the Jakarta Stock Exchange last Wednesday, public's demand for the share of said State Owned Company was extremely high that the price has sky rocketed to Rp 1.270 per share and up again to Rp 1.340 per share on Thursday.

Due to this fact, some members of Parliament and NGO have suspected that the share has intentionally been offered very low i.e. Rp 850. They said that during the roadshow to promote the IPO, people have shown interest to buy the share at around Rp 1.150 - Rp 1.200 per share.

For details, please find below an article that I have quoted from Kompas.

Sabtu, 13 November 2010 | 02:53 WIB

JAKARTA, KOMPAS.com - The polemics over the sale of PT Krakatau Steel (KRAS)’s shares through an initial public offering (IPO) could discourage foreign investors and have bad impact on the investment climate in the country. 

Following the IPO,  a controversy surfaced where many quarters were of the view that KRAS’ share price which was set at Rp850 percent was too low and might have benefited certain parties only while disadvantaging the state.
Read More ...


Wisatacom said...

all related property lives of many people
must be managed in country.

kasian anak cucu kita ya

H. Nizam said...

Yes the sales of shares of state owned enterprise, especially strategic ones like PT Krakatau Steel should not just be based on commercial aspect. We must consider our "anak cucu".

TUKANG CoLoNG said...

sedikit joke garing nih.
Kenapa anak krakatau aktif?
karena maenannya: krakatau steel dijual murah.:p

H. Nizam said...

Bisa jadi itu alasan kenapa Anak Krakatau aktif akhir-2 ini.
Ha ha ha ha ........
Boleh juga joke anda

Jhess said...

Unfortunatley this sounds very typical. No matter where you are in the world GREED over comes.

H. Nizam said...

Hi Jhess,
Yes, unfortunately the same things happen everywhere.

colson said...

Without specific and detailed information and the knowledge of an expert insider,it is hard to tell whether the price was right. Though from previous, similar cases around here I know it is pretty common that, at the launch on the stock-market, the price set for sale of shares is being exceeded by double digits' percentages.

H. Nizam said...

Hi Colson,
You are right, I remember that some blue chip shares here have been sold at prices a lot much higher that the offered price.
I am afraid there might have been efforts to politicize this matter.