Indo Straits to hold IPO in July, eyeing more coal transportation business

Integrated sea engineering and logistic firm PT Indo Straits Tbk will offer 100 million shares, which represent 18.8 percent of its total share, through initial public offering (IPO) scheduled for July 12 on the Indonesia Stock Exchange (IDX)

The Jakarta-based company said in its prospectus on Tuesday that it was established in 1985 with the initial business of providing integrated sea engineering service for oil, gas and mining companies. The company?s activities include dredging, reclamation and building port.

In June 2008, the company entered coal logistics business, providing among others tug & barge and transshipment services.

At the present time, the company has 17 sets of tug & barge and one floating crane, compared with two sets of tug & barge in 2008

The company has bagged a contract from East Kalimantan coal miner PT Jembayan Muarabara to transport 4 million tonnes per year of the latter's coal from jetty port to transshipment point. It did not mention terms of contract.

The company?s other client is trading firm PT Glencore Indonesia.

According to the company, in 2010, its clients included state coal miner PT tambang Batubara Bukit Asam (PTBA), South Kalimantan coal miner PT Arutmin Indonesia, South Kalimantan coal miner PT Bahari Cakrawala Sebuku and PT Indominco Mandiri.

The company said it transported 260,000 tonnes of coal from the clients during 2008 and the volume increased to 2.37 million tonnes in 2009. The company however did not provide breakdown figures for each client. (denny)