Harum Energy to sell 24% shares in IPO

Coal mining company PT Harum Energy expects to raise fresh funds from the sales of the company?s 24 percent shares during an initial public offering (IPO) to be launched later this month.

In its prospectus unveiled on Tuesday, the company said it planned to sell 650 million new shares or about 24 percent of its enlarged shares during the offering period of between September 20 and 30. The company will formally list its shares on the Indonesian Stock Exchange (IDX) on Oct. 6.

Harum said that proceeds from the IPO would among others be used to finance mining activities, purchase a tug boat and repay loans. The company has named Mandiri securities and Ciptadana Securities as underwriters for the IPO.

Of the total funds, some of US$50 million will be used for further development of its coal mine units, including PT Santan Batubara, $30 million to expand coal mining business, maintenance and purchase of 10 sets of tugs and barges

Harum Energy operates several coal mining in Kalimantan including PT Tanito Harum and PT Mahakam Sumber Jaya (MSJ), PT Tambang Damai in East Kalimantan and PT Santan Batubara, a 50/50 joint venture between Clough?s 82 percent owned Indonesian subsidiary PT Petrosea and Harum Energy.

Harum Energy is expected to produce 10 million tons of thermal coal this year. Harum Energy is controlled by Barki family. (*)