Inalum recommended to launch IPO
Friday, March 7 2014 - 01:22 AM WIB
State-owned aluminum producer PT Indonesia Asahan Aluminum (Inalum) has been recommended to sell its shares via initial public offering (IPO) to raise cash to finance expansion program, Minister of Industry MS Hidayat said Thursday.
Hidayat said that Inalum will need about US$700 million to finance the expansion of production capacity to 400,000 tons per annum from the current 225,000 tons. The expansion program is projected to be completed in 2017-2018.
The government fully took over the ownership of North Sumatra-based Inalum from a Japanese consortium Nippon Asahan Aluminum Co (NAA) late last year after the latter?s more than 30-year contract ended.
Aside from planning to expand production capacity, Inalum also plans to build a new power plant of about 600 MW to support the expanded production capacity.
Editing by Reiner Simanjuntak