Merrill, UBS and BNP are strong candidates for PT BA?s co-underwriter

Three major global securities companies including Merrill Lynch, UBS Warburg and BNP Paribas Peregrine have appeared as the strongest candidates to become the co-underwriter of state owned coal mining company PT Tambang Batubara Bukit Asam?s (PT BA?s) initial public offering (IPO).

Bisnis Indonesia reported on Thursday that the three global securities companies were part of the 12 foreign securities companies which last week joined a "beauty contest" to win the place as a co-underwriter of PT BA?s IPO.

The winner will jointly co-underwrite the coal mining company?s IPO in cooperation with state owned securities company PT Danareksa, which has been appointed as the lead underwriter. The securities companies, which win the "beauty contest", will be in charge in coordinating the sales of the coal company?s shares to global investors.

"Merrill Lynch, YBS Warburg and BNP Paribas Peregrine are the strongest to become the co-underwriter of PT BA?s PIO," the newspaper quoted an unidentified source as saying.

PT Bukit Asam which operates coal mining in Tanjung Enim, South Sumatra is one of several state firms which will be privatized to raise funds to finance the government?s budget deficit. The company has received a green light from the government and legislators to launch initial public offering between October and November this year. The company will sell about 30 percent of its shares during the IPO. (*)