"If it is be delayed beyond 2013 it would be in 2015 at the earliest."Jakarta (ANTARA News) - PT PLN Batam, a subsidiary of the state electricity company PT PLN decided to put off its plan to launch initial public offering (IPO) on decline in financial performance.
The IPO was originally to be launched toward the end of this year but realization has to be delayed until the first half of 2013, PLN Batam president Dadan Koernadipura said.
The company, which is located on the Batam island just south of Singapore, suffered a setback in financial performance in the first half of the year as a result of damage in one of its power generators, Dadan said here on Thursday.
The damage resulted in sharp fall in the company`s net profit to Rp24 billion in the first half of 2012 from Rp70 billion in the same period last year.
"The shareholders asked to delay the IPO plan because of the poor performance in the first half of the year," Dadan told ANTARA News.
The planned IPO valuation was to be based on the financial report of the first half of the year.
He said the damage has been fixed and the power generator has operated normally, adding, the company has even operated a new power generator to keep pace with growing demand for power in Batam.
"We hope the net profit of the company would reach around Rp90 billion this year with income around Rp1.9 trillion," he said.
He said the financial report of the semester ending in December, 2012, could be used as the basis for IPO valuation if the IPO is to be launched in the first half of 2013.
Currently, PLN Batam and the shareholder PT PLN are preparing everything for the launch of IPO , he said.
"It is for the shareholders to set the date for the IPO and the financial report to used as the basis for the valuation," he said.
It is unlikely to delay the IPO until 2014 and use financial report of the second half of 2013 for IPO valuation as it is too close to general election, he said.
The country would hold general elections in 2014
"If it is be delayed beyond 2013 it would be in 2015 at the earliest," Dadan said.
He said PLN Batam already named PT Bahana Securities, PT Danareksa Sekuritas, and PT Mandiri Sekuritas as the underwriters with Ernst & Young (EY), Biro Administrasi Efek (BAE), PT Datindo Entrycom, and Deloitte public accountant as the financial advisers.
The fund from the share sales would be used to finance a number of projects in Batam estimated to cost Rp6 trillion in the next five years .
The projects include construction of steam powered electric plant and gas fired power plant and transmission networks, he added.
(Uu.AS/H-ASG/H-YH)
Editor: Priyambodo RH
Copyright © ANTARA 2012
