Mitrabara to raise Rp319b from IPO

Coal miner PT Mitrabara Adiperdana sets the price of its initial public offering (IPO) this month at Rp 1,300 per share, hoping to raise more than Rp 319 billion in proceeds, Kontan reported on Friday.

The company said that 58.5 percent of the proceeds would be allocated for its subsidiary particularly to develop coal port.

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).

Company's coal buyers include Idemitsu, Trafigura Beheer, Dragon Energy,, and Marubeni Corp. (*)