Indika to go public in June 2008

Local mining and energy service firm PT Indika Inti Energi (Indika) offered a total of 937.28 million shares consisting of 833.14 million new shares and 104.14 million old shares through initial public offering (IPO) at Indonesia stock exchange in June 2008.

Indika has appointed PT Danakresa Sekuritas, PT Indo Premier Securities and PT Mandiri Sekuritas as underwriters as well as Citigroup and Deutsche Bank as international sales agents for the IPO, the company said in statement on Tuesday.

According to Marciano Herman, the vice president of Danareksa Sekuritas about 95 percent of the shares would be allocated to institutional buyers and 5 percent to individual investors. Marciano, however, refused to unveil the price of the shares to be sold during the IPO but earlier news reports said it expected to raise funds of about US$500-600 million.

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. (*)