Bayan Resources? IPO delayed

The initial public offering (IPO) of coal mining company PT Bayan Resources has been delayed as the Capital Market and Financial Institutions Supervisory Board (Bapepam) could not declare the effective date of the company?s registration statement as scheduled, Kompas reported on Tuesday.

Bapepam?s chairman Fuad Rahmany said in Jakarta on Monday that the agency could not issue the effective date of Bayan?s registration statement this week as expected by the company due to a problem related to exploration activities of the company?s subsidiary in East Kalimantan.

?We are still studying the new development in the company?s exploration problem,? he said.

As earlier reported, the local government of the East Kutai regency in East Kalimantan has halted the operation of Bayan?s subsidiary PT Perkasa Inakakerta (PIK) since July 11 for exploring forestry areas which belong to PT Prodisa Trading.

Bayan planned to offer about 31 percent of its shares during the IPO which would be carried from July 29 to August 1, this year. It would use up to 75 percent of the proceeds from the IPO to finance expansion projects.

Bayan?s director Jenny Quantero acknowledged that the exploration problem of the company?s subsidiary PIK had caused Bapepam to delay the effective date of the IPO.

But she said that the delay would not last long. ?The IPO will be delayed only for several days,? she said. (*)