Govt decides to sell only 15 percent stake in PTBA through IPO
Wednesday, October 23 2002 - 02:22 AM WIB
The IPO will be launched at the Jakarta Stock Exchange and the Surabaya Stock Exchange.
A source told Neraca on Tuesday of the 15 percent of PTBA shares, 3.5 percent would be allocated to the company?s employees, down from the initially planned 10 percent.
On Wednesday, PTBA will formally register for its IPO at the Capital Market Supervisory Agency (Bappepam), according to the source.
The source further said PTBA had yet to find a co-underwriter to replace PT BNP Paribas which had pulled out after being appointed to handle the sale of PTBA shares to foreign investors.
PTBA?s director in charge human resources development and general affairs Mahbub Iskandar said they might appoint PT Danareksa, its underwriter for the sale of its shares to local investors, to also handle share sales to foreign investors.
Mahbub said they expected IPO proceeds to reach more than Rp 500 billion (US$=Rp9,200). ?We are continuing discussions to decide an exact amount,? he said.
He said PTBA would use a portion of the funds from the offering to build a coal-fired mine mouth power plant in South Sumatra, and increase the company?s production.
PTBA had submitted a bid to buy a stake in East Kalimantan-based coal mining giant PT Kaltim Prima Coal.
PTBA operates coal mines in South Sumatra and West Sumatra which turn out 10.2 million tons of coal in 2001. The company?s total production was targeted at 9.8 million tons in 2002. (*)