Adaro plans IPO for logistics unit

Petromindo|Khalsa

IDX-listed integrated coal firm PT Adaro Energy Tbk plans to sell shares in its subsidiary PT Adaro Logistics via initial public offering (IPO) next year, Bisnis Indonesia reported on Monday.

The paper quoted President Director of Adaro Energy, Garibaldi Tohir as saying that the company will continue to push subsidiaries with good performance to go public as the Indonesian stock market continues to develop.

?Going forward, we?ll look into our subsidiaries with good performance such as PT Adaro Logistics to enter the stock market,? he told the paper. He said that Adaro Logistics has the potential to become a publicly-listed company in 2018. He did not provide further details.

Adaro Logistics operates an integrated supply chain system delivering coal from mine pits to the ports and end consumers. The company has a number of subsidiaries including PT Maritim Barito Perkasa, which operates 95 units of coal barges and tug boats. Another subsidiary PT Indonesia Bulk Terminal operates a special coal terminal at the Taboneo port in Banjarmasin, South Kalimantan. Meanwhile, subsidiary PT Puradika Bongkar Muat Makmur provides loading and unloading services at the Taboneo port.

Adaro Logistics accounts for 35-40 percent of Adaro Energy?s total revenue, which is still 50 percent dominated by coal. The remaining 10 percent comes from power business.

According to the paper, Adaro Logistics plans to diversify into oil and gas transport to end dependency on coal transport business. (*)