Adaro Energy to raise $1.3b through IPO

Integrated coal mining PT Adaro Energy said Monday it hoped to raise fresh funds of about US$1.3 billion through the initial public offereing (IPO) scheduled for July 2, 2008.

Adaro plans to offer 34.8 percent of its enlarged capital in June in a range of Rp 1,050 (1US$=9,350) to Rp1,125.

Adaro appointed PT Danatama Makmur as IPO lead manager, while UBS, Morgan Stanley and DBS will act international placement agents.

Company Finance Director David Tendian told reporters that the firm's sales could jump to Rp 16.02 trillion this year and Rp 24.3 trillion next year from Rp 11.6 trillion last year thanks to higher coal prices and lower debt.

Its EBITDA (earnings before interest, tax, depreciation and amortisation) is seen rising to Rp 9.55 trillion in 2009 from Rp 2.4 trillion last year.

Adaro Energy is a holding company, which owns South-Kalimantan coal miner PT Adaro Indonesia, coal termina operator PT Indonesia Bulk Terminal, coal mining contractor PT Saptaindra Sejati and power plant operator PT Makmur Sejahtera Wisesa. (denny)