KRAKATAU STEEL TO MAKE IPO IN NOVEMBER

Jakarta, Feb 8 (ANTARA) - State steel maker PT Krakatau Steel plans to make an initial public offering (IPO) of shares in November, its president director said.

The maximum number of shares to be floated in the IPO would be 30 percent of the total, Fazwar Bujang said on the sidelines of a hearing with the House of Representatives' Commission VI here on Monday.

Krakatau Steel would float all the shares in stages as approved by the House, he said.

All the shares would be new, he said.

The company was in the middle of selecting a financial adviser and stock issue underwriter to issue the shares, he said.

Earlier, State Enterprises Minister Mustafa Abubakar said Krakatau Steel was expected to make an IPO of its shares in the second half of 2010.

But he likewise asked the management of the steel maker to consider the impact of the Asean-China Free Trade Area (ACFTA) which came into force early this year.

"At least we must first consider the impact of ACFTA on the company in the next six months," he said.

The domestic steel industry would be among those to be hit hardest by the glut of Chinese products as a result of ACFTA's implementation.
"The management of the company must consider it carefully to decide whether or not it will proceed with the IPO," he said.