Mitrabara to launch IPO

Coal mining company PT Mitrabara Adiperdana plans to sell shares to the public via an initial public offering (IPO) to raise funds to finance the construction of port facility as it aims to bolster production, reports said on Tuesday.

Kontan quoted Achdiarini Siwiwardhani, a director at securities firm Sucorinvest Central Gani, the underwriter of the IPO, as saying that with share price targeted at Rp 1,150-Rp 1,350, the company stands to raise Rp 313.99-368 billion in proceeds, but only Rp 156.99-184.3 billion will go to the company?s coffer as part of the shares to be offered to the public belong to PT Wahana Sentosa Cemerlang (a shareholder in the company).

Nearly 60 percent of the proceeds will be used by Mitrabara to develop its subsidiary particularly building a port facility, while the remainder for working capital of Mitrabara.

Mitrabara hopes the capital market authority to give effective approval for the planned IPO on June 30.

Mitrabara President Director Khoirudin was quoted by Kontan as saying that Mitrabara aims to increase production to help cope with the current drop in coal price. This year, the company has set a target to produce 2.5 million tons of coal, an increase of 38.8 percent from 1.8 million tons last year.

The company will continue to boost production until 2016, he said. ?In 2015-2016, we have set a coal production target of 4 million tons per year,? Khoirudin said.

Mitrabara holds a coal concession in North Kalimantan with reserves estimated at 45.38 million tons (proven and probable).

Meanwhile, Bisnis Indonesia said that Japan?s Idemitsu Kosan Co Ltd could potentially own 27.68 percent shares in Mitrabara following the IPO as the company has an option to acquire the shares following an April 2014 agreement with Mitrabara shareholders PT Wahana Sentosa Cemerlang and Athanasius Tosin Suharya (vice president commissioner of Mitrabara). (*)