Alfa raises Rp 150 billion via IPO

By Thomas Sembiring

IDX-listed East Kalimantan coal miner PT Alfa Energi Investama Tbk has raised Rp 150 billion in proceeds after selling 23.08 percent of its shares via a recent initial public offering (IPO). The company officially listed its shares on the Indonesia Stock Exchange on Friday.

Alfa Energi Finance Director, Lyna said that about 31.74 percent of the IPO proceeds will be used to repay debt to PT Indo Jasa Utama, 17.35 percent to finance infrastructure facilities, and the remainder for working capital.

Lyna said that the company last year booked a revenue of Rp 98 billion, an increase from Rp 78.82 billion in the previous year. Coal sales volume last year jumped to 348,000 tons from 152,000 tons in the previous year.

Alfa Energi indirectly owns PT Alfara Delta Persada, which operates a 2,089-ha coal mine in Angga, Kutai Kartanegara Regency, East Kalimantan, with mineable reserves estimated at around 6.58 million tons and resources of 21 million tons. The company plans to increase production to around 530,000 tons this year, independent director Ishak Abdul Rahman said recently. The company exports its coal output to China, India and South Korea, and also allocated part of it for the domestic market. The company produces low to medium rank coal with CV of 3,500, 4,200, and 4.500 kcal per kg. The coal contains 0.6 percent sulfur, and 8 percent ash, with water content of 30-42 percent.

Editing by Reiner Simanjuntak