Berau Energy to float 18.8% shares in August

PT Berau Energy, parent company of East Kalimantan coal miner PT Berau Coal, will float 7 billion new shares or about 18.8 percent of total shares on the Indonesian Stock Exchange on August 19, this year.

The company did not give estimates of fresh funds that it will get from the initial public offering (IPO).

The fresh funds 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 has appointed PT Danatama Makmur and PT Recapital Securities as lead underwrites.

Earlier, Rosan Roeslani, president director of PT Recapital Advisors which indirectly controls Berau Energy said that the company will offer 20-30 percent shares to public to get around US$300-450 million of fresh funds.

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 from 14.5 MT at present, the company?s president director Didik Cahyanto said last month. (denny)