Foreign securities firms to join PTBA?s IPO

At least 12 foreign securities companies will join a "beauty contest" to become co-underwriters of the state owned coal mining company PT Tambang Batubara Bukit Asam (PTBA)?s initial public offering (IPO). The securities companies will be also selected to become sales agents of the company?s IPO in overseas markets, Bisnis Indonesia reported on Friday.

Sources said that the securities companies which will be selected either as sales agents or co-underwriters will cooperate with stated owned securities company PT Danareksa Sekuritas which acts as a lead underwriter in PTBA?s IPO. The beauty contest during which participants will present their sales and underwriting capability will be held later this week.

PTBA plans to sell 30 percent of its shares during IPO which will be launched in November this year. But the government?s financial advisor for the divestment of PT Kaltim Prima Coal said that the IPO would be more attractive if it is launched after the divestment of KPC shares.

Sources said PTBA has been selected to buy 20 percent of the 51 percent share that must be divested by KPC?s existing shareholders. (*)