Bukit Asam IPO plans delayed into September
Monday, March 27 2000 - 04:00 AM WIB
The initial public offering (IPO) of the state coal-mining firm PT Tambang Batubara Bukit Asam has been delayed into September or October because of the remaining weak capital market condition, according to the company's president R.A. Sunardi.
Sunardi was quoted as saying by the Suara Karya daily that the company had also decided to back down from the earlier plan of a dual listing in Jakarta and London.
Sunardi said that the technical audit on the company would only be completed in June and the due diligence process to set the value of the company would only start in May.
Sunardi also declined to say how many shares would be offered to the public, and how much money was expected to be raised.
But he said that the company expected part of the proceeds would be used to finance the company's expansion programs and development of infrastructure include railways and export ports.
The Bukit Asam IPO was part of the government privatization program to raise cash to help finance the state budget.
Bukit Asam booked a net profit of Rp 362 billion in 1999 with total production of 11.2 million tons. (*)