Dian Swastika expects to raise Rp 150 billion from IPO

PT Dian Swastika Sentosa, an independent power producer, expects to raise between Rp 100 billion and Rp 150 billion (1US$ = Rp 9,400) from the company?s initial public offering (IPO) which will be launched in December, this year.

Dian Swastika?s President Director Lay Krisnan Cahya said in Jakarta on Thursday that the company planned to sell 100 million shares to the public to raise funds to finance its expansion plan.

The shares would be sold at a price of between Rp 1,000 and Rp 1,500 each in the IPO which would be underwritten by PT OSK Nusadana Securities, Lay said.

He said about Rp 44 billion of the proceeds from IPO would be used to settle the payment for the acquisition of PT Bumi Kencana Eka Sakti which owns five coal mining companies with total coal reserves of about 160.4 million tons.

The company did not give details about the mines.

The rest of the IPO proceeds would be used to strengthen the company?s capital structure, he added.

Dian Swastika, a subsidiary of Sinarmas Group, operates four power plants with total capacity of 300 megawatt. The electricity is supplied to Sinarmas?s pulp and paper subsidiary Indah Kiat.

The company is also engaged in providing electricity infrastructure and base transceiver stations for mobile telecommunication. (*)