The low price of state-owned company Krakatau Steel’s initial public offering (IPO) could cost the state a loss of at least Rp 450 billion, a legislator says.
“The IPO price was originally calculated between Rp 800 to Rp 1,150 per share. Why was then the price set at only Rp 850?” Chandra Tirta Wijaya from the National Mandate Party (PAN) told reporters at the House of Representatives in Jakarta on Monday.
“Investors are still willing to buy even if the price is set between Rp 1,000 and Rp 1,100. If the IPO is sold at that price, the state could gain benefits between Rp 450 billion and Rp 750 billion,” he added.
Chandra also said that state-owned company minister Mustafa Abubakar had to be fully transparent in revealing the reasons behind the IPO price allocations and the names of the people or companies receiving the allotment from the offering.
Meanwhile, Indonesian Resources Studies (Iress) chairman Marwan Batubara said in a press release that Mustafa had at least three times sold state-owned companies’ IPOs at low prices.
“First, the stock of PT Pembangunan Perumahan (PP) was sold at only Rp 560 per share, now the price is Rp 1,000 per share. Second, the stock of Bank Tabungan Negara (BTN) was sold at Rp 1,000 per share, now the price is Rp 2,000 per share. Finally, the stock of Bank Nasional Indonesia (BNI) was sold at Rp 2,900 per share, now it is at Rp 3,500 per share,” Marwan said.
Marwan also said that Krakatau Steel IPO had to be cancelled, or at least delayed, to prevent state’s loss.
“The House must also investigate this issue. The people has to know the reason why the legislators remain silent despite the fact that there is a major violations taking place in front of their eyes,” he said.
Source : TheJakartapost.com
