Berau Energy raises Rp1.36 trillion of fresh funds from IPO

PT Berau Energy, the holding company of East Kalimantan coal miner PT Berau Coal, has raised fresh fund totaling Rp 1.36 trillion (1US$ = Rp 9,000) from its initial public offering (IPO) on Thursday.

Berau Energy has floated 3.4 billion new shares or about 9.7 percent of its total shares. The fresh fund will be used for the company?s acquisition plan and capital expenditure.

The company, through its unit Seacoast Offshore Inc. will use 8 percent of the fresh fund to buy out Malaysia-based coal trading firm Maple Holdings Ltd.

The company targeted to produce 17.9 million tons of coal this year with average price US$58 per ton, increased from $56.4 per ton in 2009, the company?s director John J Ramos told reporters on Thursday.

?With average price of $58 per ton, the company?s revenue will reach $1.038 billion for this year," he said. This year the company will spend around $48 million from total $240 million of capital expenditure that company has allocated for the next four years.

Recapital bought a 90 percent stake in Berau Coal last year for $1.48 billion.

Berau Coal has planned to boost its output to 30 million tons (MT) per annum in 2014, the company?s president director Didik Cahyanto said in June. (denny)