Photo credit:

JAKARTA (TheInsiderStories) – Indonesian general insurer PT Asuransi Tugu Pratama Indonesia, which is majority-controlled by state-owned energy company PT Pertamina, will offer 282.35 million new shares to the public through an initial public offering on the Indonesia Stock Exchange.

The number of shares offered to the public is equivalent to 15 percent of the company’s total equity.

The insurer plans to use 75 percent of the IPO proceeds to strengthen its capital base, including for strengthening its operations, while the remainder will be injected into its reinsurer subsidiary Tugu Reasuransi Indonesia.

The initial offering will be held from April 11-23, and general offering is slated for May 7-9. The company has not announced how much it prices its shares to investors but has hinted it may be in the range of Rp 3,850-Rp 5,000 a piece.

Asuransi Tugu posted a strong 71.7 percent growth in its net income to Rp 258.4 billion, thanks to strong sales from its insurance products. The company has strong clients from the energy sector such as providing insurance policy for offshore activities.