Evaluation team finds no foul play in Krakatau Steel's IPO

The Independent Evaluation Team for the Initial Public Offering (IPO) of Krakatau Steel concluded that no foul play was involved in the process – from the appointment of the underwriter to the price setting and shares allotment.

“We did not find any intrigue in the appointment of the underwriter,” Hikmahanto Juwana, an evaluation team member, said on Tuesday.

The team also found that there were no signs of foul play in the setting of the price, in which many people were involved, he added.

He further said that the underwriters, who must guarantee that all stock were sold, have taken steps to confirm that only qualified investors bought the shares, as reported by tempointeraktif.com.

The citizen lawsuit filed by certain groups, he said, was their citizen right, although the Indonesian legal system did not recognize the procedure. The Indonesian legal procedure recognized class action which Hikmahanto said was applicable in certain sectors only.

“[Class action] is not recognized for stock markets. The judge must weigh up whether the plaintive also has standing [as the part which bears the loss or is directly related] or not,” he added.