Business

House to investigate Krakatau
Steel IPO

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.

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