ABM Investama sets IPO price

An integrated coal mining company, PT ABM Investama has set its share price in the planned IPO to be between Rp 3.250 and Rp 4.650. The expected proceeds would be used to finance the expansion of its subsidiaries.

President Director of PT AMB Investama, Andi Djajanegara said that the company would offer some 555 million shares, or about 20 percent of the company?s total shares.

"We plan to develop our five main business, namely coal mining, mining contractor services, rental of electric generating machinery, engineering services and rental and logistics ships,? he said.

He said that 66 percent of the expected proceeds from the IPO would be used to finance the expansion of its subsidiaries, 27 percent for debt financing and 7 percent for working capital

The company predicted that its capital expenditure would increase by 30 percent in 2012 from this year?s Rp2.2 trillion.

The company has appointed two underwriters for the IPO namely PT Mandiri Sekuritas and PT Mazquarie Securities Indonesia with Morgan Stanley & Co International Plc would act as global coordinator. (giok)