GEMS to reap up to $500m through IPO
Friday, May 27 2011 - 07:59 AM WIB
DSS said that GEMS will offer maximum 1.25 billion shares with a price range of Rp 2,300-3,500 (27-41 US cents) per share.
GEMS has appointed Sinarmas Sekuritas as underwriter for the IPO. The company did not give timeline when GEMS will be listed in IDX.
GEMS also picked ANZ Singapore as a financial advisor to conduct due diligence to find suitable strategic partner, which currently the company has talked with several investors including from India and South Korea.
The company did not give the interested strategic partners? name. But according to the company?s official told Petromindo.Com on Friday that the six strategic investors including Coal India, PT United Tractors Tbk and some other from foreign and local companies.
The official also said that the IPO will be conducted in mid of August, this year.
GEMS owns several coal units including PT Borneo Indobara (BIB) in Tanah Bumbu regency, South Kalimantan (CCoW holder), PT Kuansing Inti Makmur (KIM) in Muara Bungo, Jambi, and PT Manggala Alam Lestari (MAL) in Musi Banyuasin, South Sumatra
From the three mines, GEMS has resources of approximately 3 billion tonnes of coal.
Between 2006 and 2010, GEMS invested more than US$200 million for exploration, infrastructure, land compensation, as well as building roads and jetty ports.
GEMS has targeted to produce 10 million tonnes of coal from BIB and KIM mines for this year and is targeting to produce around 20 million tonnes of coal from the three mines in 2013. Last year, the company produced only 2.5 million tonnes from BIB and KIM mines.
MAL is still in exploration stage and it expects to start production in 2012 with initial coal production of 1 million tonnes. (denny)