Adaro IPO may be delayed

The planned initial public offering (IPO) of coal miner PT Adaro Energy may be delayed as the capital market and financial institution supervisory agency Bapepam-LK has yet to give its approval according the schedule set by the company, Media Indonesia reported on Friday.

The company previously hoped that Bapepam-LK would be able to give its approval on June 20 (today) so that its IPO could be launched on July 02 as scheduled.

Bapepam-LK's chairman Fuad Rahmany said in Jakarta on Thursday that the agency could not issue the permit according to the schedule because it would still need more time to study the company?s legal problems.

The agency earlier said that it had hired an independent legal consultant to study the legal problems faced by the company.

Adaro Energy plans to sell 11.139 billion shares, or about 34.8 percent of its total share.

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