Bayan Resources to use 75% of IPO proceeds for expansion
Thursday, June 19 2008 - 02:50 AM WIB
In the IPO, Bayan, the parent company of coal miner PT Gunungbayan Pratamacoal, plans to sell 1.05 billion new shares which account for 31.6 percent of the company?s enlarged capital.
The IPO proceeds are expected to reach about US$400 million.
The company said in the IPO prospectus that 75 percent of the IPO proceeds would be used to finance acquisition of 49 percent shares of coal upgrading mining company PT Kaltim Supacoal worth of US$612,500 or about Rp 131.8 billion.
Besides, the firm will use some of the proceeds to acquire a floating transfer station worth US$34 million and add its armada at the Balikpapan, East Kalimantan coal terminal. Also, it will allocate between $40 and $50 million to boost the working capital and to finance the expansion projects of its subsidiary PT Wahana Baratama Mining and between $35 and $40 million to finance the projects owned by another subsidiary PT Perkasa Inakakerta.
Bayan plans to produce a total of 9 million tons of coal this year, almost double last year's output. This is possible because a number of subsidiaries have started to produce. PT Perkasa Inakakerta in Bengalon, East Kalimantan started production in the middle of 2007, PT Wahana Baratama Mining, which located in Satui, South Kalimantan in late 2007, while PT Teguh Sinar Abadi and PT Firman Ketaun Perkasa in East Kalimantan will start production in the second quarter of 2008.
Bayan produced a total of 4.7 million tons last year with PT Gunungbayan Pratamacoal contributing 4.1 million tons of the total.
Bayan is owned by Dato Low Tuck Kwong (75 percent), Jenny Quantero (15 percent) and Engki Wibowo (10 percent. After the IPO, Low Tuck Kwong's ownership will drop to 51.3 percent, Jenny's 11.3 percent, Engki's 7.5 percent while the public will hold 25 percent. (denny)