Bumi?s non coal businesses expect to raise US$ 400 million from IPO

PT Bumi Resources Mineral (BRM) expects to raise up to US$400 million from initial public offering (IPO) which is scheduled to be launched between September and October, this year.

?Our target from IPO is to raise fresh funds of about $300-400 million,? said president director PT Bumi Resources Tbk, Ari Saptari Hudaya in Jakarta on Monday.

BRM, newly established subsidiary of Bumi Resources, was created from the mergers of Bumi?s four non-coal businesses including Lemington Investment Pte Ltd (which owns Bumi Mauritania and Konblo Bumi Inc), Calipso Investment Pte Ltd (which owns Herald Resources Ltd), PT Citra Palu Minerals, and PT Multi Capital (which owns PT Newmont Nusa Tenggara)

Ari said that BRM with equities of about US$900 million was expected to sell about 16-20 percent of its shares to the public in the second semester of this year.

Meanwhile, Bumi plans to issue bonds worth up to $450-500 million to partly refinance its debts.

Bumi?s financial director Andrew Beckham said that the proceeds from the issuance of the bonds would be used to partly refinance the company?s debts especially those which carried high interest rates.

To date, Bumi?s total debt is $3.7 billion, he said. (*)