Cipaganti plans to launch IPO next year

PT Cipaganti Citra Graha, a public transportation company, plans to sell up to 35 percent of the company?s shares in an initial public offering (IPO) which will be held in the first semester, next year.

Mulyadi, the chief operation officer of the Cipaganti group, said in Jakarta on Tuesday that the company expected to raise Rp 750 billion from the IPO. He said that the IPO proceeds will be mostly used to finance the company?s expansion into coal mining in East Kalimantan.

Cipaganti owns two coal mining concessions in Batulicin, South Kalimantan and in Penajam, East Kalimantan. At present, the company produces about 50,000 tonnes a month. Mulyadi said with the expansion, the company would be able to produce 3 million tonnes a year

Cipaganti has named PT Batavia Prosperindo Sekuritas as the lead underwriter of the IPO.

Mulyadi said although the company?s coal mines had begun commercial production, the transportations services remained the largest contributor to the company?s revenues. At present, Cipaganti Citra has a fleet of 3, 500 cars serving Java and Bali. The company plans to increase its operational cars to 15,000 in 2015.

According to Petromindo.Com data that Cipaganti Group has 9 coal mines in East Kalimantan through ownership and join operation. The Group through its coal unit PT Cipaganti Inti Resources (CIR) has started coal production from a mine in Paser Penajam Utara regency under a name of Koperasi Paser Bolum Taka.

CIR has eight other coal mines in East Kalimantan including CV Temiang, PT Adas Abadi and PT Maesa Persada Jaya, Laut Tambang block in Damai, East Kutai, Sandaran block in East Kutai, Bentian block in West Kutai and Bongan block in West Kutai. The other eight blocks have not come into production yet. (*)