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State-owned steel maker PT Krakatau Steel plans to launch a two-stage initial public offering, selling a 20 percent stake in November and another 10 percent at a later date.

Krakatau president director Fazwar Bujang said the House of Representatives had approved the company selling up to 30 percent of its total share capital.

“We’ll first sell a 20 percent stake in the IPO, followed by another 10 percent in the second stage,” he said on Tuesday. He did not say when the second stage would be conducted.

Fazwar also did not say how much the company aimed to raised from the IPO but recent reports suggested it was hoping to raise about Rp 3.5 trillion ($388.5 million).

The country’s largest steel maker, Krakatau is one of two state-owned enterprises to begin privatization this year. National airline PT Garuda Indonesia is the other.

In February, Fazwar told reporters that the company planned to reduce the size of its IPO to less than 20 percent because of market conditions. But with the stock market having rallied strongly in recent weeks, Krakatau and the government seem to be increasingly confident.

Meanwhile, Fazwar said Krakatau’s planned joint venture with South Korea’s Pohang Iron & Steel (Posco) was on target to be realized soon.

“At present we are still in the joint venture agreement stage. In this stage, we discuss technical details such as how many products [will be] allocated for export or the domestic market, the directors’ names and other details,” Fazwar said.

He said he expected the agreement to be signed in May. Afterward, both companies will register the joint venture company with the Justice and Human Rights Ministry.

Coordinating Minister for the Economy Hatta Rajasa said last week that the signing of the planned $6 billion integrated steel project would be completed this month.

The two companies plan to build an integrated steel mill in Tangerang, Banten. Under a preliminary agreement signed in December, Krakatau will take a stake of 30 percent to 45 percent, with the remainder to be held by Posco. The new steel plant is expected to have annual production capacity of as much as 5 million tons.

Fazwar said the new company would start production in late 2013 or early 2014.

Irvan Hakim, Krakatau’s marketing director, said demand for steel would continue to grow in line with the country’s accelerating economic growth.

“Last year, national consumption was only around 8 million tons of steel. This year we expect it to increase by 12 percent,” Irvan said.

Krakatau produces 2.5 million tons of steel a year.