Indika to float shares to raise $300 million

PT Indika Energy, a stakeholder in Indonesia's third-biggest coal company, plans to raise as much as Rp. 2.8 trillion (US$300 million) through sale share at Indonesian Stock Exchange next month and use the proceeds to buy mines and build a power plant.

Jakarta-based Indika Energy will sell maximum of 937.3 million shares, or an 18 percent stake, at between Rp.2, 300 and Rp.2, 950 per share, according to the company?s release Thursday.

PT Danareksa Sekuritas, IndoPremier Securities and Mandiri Sekuritas are joint lead underwriters for the IPO while Citigroup Global Markets Limited and Deutsche Bank AG were appointed overseas sale agent.

Indika, established in 2000, is a privately-owned investment holding company. Its major investment assets include a 46 percent stake in East Kalimantan coal miner PT Kideco Jaya Agung and a 100 percent stake in Tripatra Group.

Kideco, the major cash flow provider to the holding company, commenced its commercial operations in 1993, with a 30 year CCOW valid until 2023. Tripatra is a leading engineering, procurement and construction (EPC) and operations and maintenance (O&M) service provider in Indonesia with a focus on energy and infrastructure projects.

In powers sector Indika through Tripatra has 20 percent stake in the 660-MW coal-fired Cirebon IPP in West Java, which is currently under construction.

CEO M. Arsjad Rasjid told a public expose that the company had signed sales and purchase agreement to acquire a coal mining firm in East Kalimantan. He said that the mine, which operates under the Coal Contract of Work, is located 15 kilometers from Kideco and has coal reserves with CV of 6,300 Kcal./kg. He further said the deal would be closed in one month.(denny)