PTBA lists shares on JSX and SSX

State-owned coal mining company PT Tambang Batubara Bukit Asam (PTBA), which recently offered 15 percent shares to the public via an initial public offeing (IPO), listed on Monday the shares on the Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (SSX).

Shares in the company gained Rp 25 per share, compared to the IPO price of Rp 575, during the first day of trading as of 10 a.m.

Meanwhile, the Bisnis Indonesia daily reported that the IPO of the PTBA shares has been oversubscribed thanks to a strong demand from foreign investors

A source told the daily that the main priority had actually been given to local investors but many foreign buyers could finally buy a larger part of the shares because many local buyers could not provide enough funds to fulfill their orders.

He cited that state owned workers? insurance company PT Jamsostek initially ordered to buy 75million shares or about 22 percent of the shares on offer but the company was able only to provide funds for only seven million shares. "The larger part of the shares finally went to foreign investors," he added.

The source said that the company?s 15 percent share during the recent IPO were in fact allocated for local investors, while the foreign investors would be given the opportunity to buy the stock during the second offering in the second semester, next year.

Some foreign investors such AIG Investment and Phaim Asset Management from Singapore, Indocam Asset Management and Fidelity Investment from Hong Kong and Tenaga National Bhd from Malaysia, and Kideco expressed their keen interest to buy PTBA?s shares during the company?s road show in Singapore prior to the launch of the IPO.

The Tanjung Enim, South Sumatra-based coal mining company sold about 346.5 million shares or about 16.26 percent of the its total shares during the IPO. The shares consisted of 315 million government?s shares and 31.5 million new shares. The price was fixed at Rp 575 per share. (*)