JAKARTA: Financial Institution and Capital Market Supervisory Agency has imposed IDR1.35 billion of fines to eight underwriters of PT Krakatau Steel Tbk’s initial public offering, as they violated allotment process.
Two sources who are familiar to the matter said the capital market watchdog decided to punish the underwriters on August 24, 2011.
Five securities firms, acting as syndicated underwriter, allegedly violated the rule as they ordered 980,000 shares or equal to 0.03% of total offered shares, which were 3.15 billion shares.
The initial names of the five securities are PT MPI Securities, PT S Sekuritas, PT UKH Securities, PT BB Sekuritas, and PT MA Sekuritas.
The Agency (Bapepam-LK) has also imposed another fines to three joint lead underwriters (JLU) of the IPO. The initials of the three JLUs are PT B Securities, PT D Sekuritas, and PT M Sekuritas.
There were many doubled orders by one customer through pooling and fixed allotment, the source told Bisnis. In total, the fines worth IDR1.35 billion.
IDR500 million of fines imposed to D Sekuritas as well as M Sekuritas, while B Securities fined for IDR100 million. MPI Sekuritas, S Sekuritas, UKH Securities, BB Sekuritas, and MA Securities has to pay IDR50 million of fine respectively.
"One thing should be questioned to Bapepam-LK is why the sanction to the three JLUs has not yet officially announced until today? The fine value correlates with the alleged violation. Was it is because of Idulfitri holiday? " said the source.
Until the news published, President Director Harry M. Supoyo and Managing Director of Mandiri Securities Kartika Wirjoatmojo were unable to reach for confirmation about the fine.
The cellular phone of Bahana Securities’s President Director Eko Yuliantoro and President Director of Danareksa Securities Marciano Hersondrie Herman was also not active when confirmation call launched.
Chairman of Bapepam-LK Nurhaida confirmed the sanction of fines to the underwriters of the initial public offering (IPO) Krakatau Steel, but has not yet prepared to give detail about the amount of fines that will be imposed to them.
"Yes, they already got sanctions," she told Bisnis recently.
Head of Inspection and Investigation Bureau of Bapepam-LK Sardjito declined to comment on the sanctions imposed to the underwriters of the IPO.
"Clearly, my job [in Bureau of Inspection and Investigation] is over and now the matter has been delegated [to committee of sanction imposition]. Just ask Pak Robinson Simbolon [Head of Legislation and Legal Aid], " he said.
When being confirmed, Robinson did not answer the phone or reply messages sent. Previously, he indicated that more than five securities companies found guilty on violating Krakatau Steel’s IPO allotment.
The indication came after the institution carried out in-depth investigation on the case. Robinson explained if the five securities violated the allotment process, then all JLU is also potentially to be found guilty.
Krakatay Steel officially listed its KRAS-coded shares on Indonesia Stock Exchange (IDX) on November 10, 2010. The total share released are 3.16 billion of units and was set at IDR850 per share.
It became polemic as the initial price was considered highly discounted. At the end of last year, Bapepam-LK found five brokers violating the allotment, based on the findings of the audit of a public accountant. (t03/ags)