30% of PTBA?s shares to be sold during IPO allocated to foreign investors

About 30 percent of shares that will be sold by state owned coal mining company PT Bukit Asam (PTBA) during the company?s initial public offering (IPO) in November this year will be allocated to foreign investors, Bisnis Indonesia reported on Thursday.

PTBA?s corporate secretary Munandar said in Jakarta on Wednesday that the sales of the company?s shares to foreign investors would be arranged by BNP Paribas which had been appointed as the co-underwriter of the company?s IPO, while the sales of the shares to domestic investors would be handled by Danareksa Securitas which had been named as the lead underwriter.

"As scheduled we will submit document to the Capital Market Supervisory Agency (Bapepam) on August 26 to formally register our IPO plan," he was quoted as saying by the daily.

PTBA is one of several stated owned companies that have been included in the government?s privatization program in efforts to raise cash to fill in the budget deficit. The Tanjung Enim, South Sumatera-based coal mine operator is expected to sell about 30 of its shares in the IPO, which has been delayed for several times due to unfavorable condition in the capital market.

Munandar however said that he did not know what to do with the proceeds from the IPO. "It is the office of the State Minister for State Owned Enterprises which will decide," he said. (*)