Adaro Energy to launch IPO in July

PT Adaro Energy is set to launch its initial public offering (IPO) in July this year to raise fresh funds for the company's expansion plan.

PT Danatama Makmur has been appointed as the lead underwriter in the IPO, and UBS AG, Morgan Stanley and PT DBS Securities as co-underwriters.

Vicky Ganda Saputra, the vice president of Danatama, said in Jakarta on Wednesday that Adaro Energy would sell 31.7 percent of the company's enlarged shares during the IPO.

Adaro Energy is a holding company, which owns South-Kalimantan coal miner PT Adaro Indonesia, PT Indonesia Bulk Terminal, and coal mining contractor PT Sapta Indra Sejati.

He said that Adaro Energy expected to raise about US$500 million from the IPO, and planned to use the money to repay debts and to finance expansion.

According to Vicky, Adaro Energy would file its IPO plan with the Capital Market Supervisory Agency (Bapepam) this week.

Earlier, Adaro scheduled the IPO for September this year. (*)