Gunung Bayan Pratama plans Singapore IPO: Report

East Kalimantan coal producer PT Gunung Bayan Pratama Coal is trying to bring in a strategic partner and ramp up its output before a planned stock listing in Singapore, sources familiar with the matter said on Thursday as reported by agency.

Controlled by Dato' Low, an Indonesia-based businessman known for his penchant for art collection, the firm has held rounds of talks to bring in a strategic investor to assist its expansion and listing plan, they told Reuters.

In the past year, Low has engaged in talks to sell an around 25 percent stake in Gunung Bayan to an unidentified Singapore government investment agency, said the sources, who asked not to be identified.

Having a strategic investor would also make the company's share sale, estimated to raise hundreds million of dollars, more attractive to overseas investors, the sources said.

Gunung Bayan wants to list on Indonesia's Surabaya stock exchange before going public in Singapore next year, which offers better valuations than Indonesia, sources said.

"They are still pushing ahead with the Surabaya listing, which they have to do first before they can do an overseas listing," said one source.

Currently, Gunung Bayan is focusing on a feasibility study to develop its underground coal mining reserves, which has been made viable by the recent surge in coal prices, sources said. Most of its producing assets are open-pit mines.

Gunung Bayan produced some 5 million tonnes of coal in 2005. (*)