House to investigate Krakatau Steel IPO
The Jakarta Post, Jakarta | Business | Thu, November 04 2010, 1:10 PM
The House of Representatives commission VI said Thursday it
would investigate the low share price in
the initial public offering (IPO) of state-owned steel producer Krakatau Steel.
"We will summon the State-Owned Enterprises Ministry
and the company management. We will investigate why the share price is so
cheap," Syukur Nababan of the Indonesian Democratic Party of Struggle said
as quoted by kompas.com.
The commission would question the reason behind the Krakatau
Steel IPO, and buyers of the shares, he said.
The Krakatau Steel share was sold at Rp 850 (less than 10
U.S. cents) per share during the IPO, but analysts deemed the price was too
low, saying the share could be sold more than Rp 1,000 per share.
