Target Of Obtaining PT KHI Pipe Of Rp. 118 Billion From The IPO

Jakarta (ANTARA News) – The President Director of PT Krakatau Steel (Persero), Daenulhay, said that his party obtained Rp118 billion in funds from the initial public offering (IPO) program of its subsidiary, PT KHI Pipe.

“Our target of the PTB Pipa KHIB IPO is Rp. 118 billion,” said Daenulhay, after holding a Hearing Meeting with Commission XI DPR RI in Jakarta, Monday.

It plans to sell shares through an IPO (Initial Public Offering) from PTB KHI Pipe worth 40 percent.

The privatization program for PTB KHI Pipe’s subsidiary is planned to be realized in the third quarter of 2007 along with the divestment plan through a strategic partner scheme against another subsidiary, namely PTB Pelat Timah Nusantara (Latinusa).

“The proceeds are planned to be used for business expansion, debt refinancing and working capital,” he said.

The parent company of PTB Krakatau Steel in preparation for the privatization of the company in 2009 itself has also begun “business process reengineering”, revitalizing production facilities, implementing company resource planning, and reorganizing and transforming technology.

PTB Krakatau Steel suffered a loss of Rp162 billion last year because the company’s operating funds were absorbed by financing gas, fuel oil (BBM) and electricity, so the holding company privatization was postponed.

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