PTBA to offer 346.5 million IPO shares Dec 11-13

State-owned coal miner PT Tambang Batubara Bukit Asam (PTBA) said Monday it will sell 346.5 million shares Dec 11-13 in an initial public offering.

The shares will include 315 million of the government's shares in the company and 31.5 million new shares.

The IPO shares represent 15% of the company's enlarged equity, PTBA said in a statement.

The company hasn't set the IPO price for the shares, which have nominal value of 500 rupiah ($1=IDR9,210) each.

PTBA will give one warrant for every two shares bought. The warrant holders will be entitled to buy the company's shares at a yet-to-be-determined price from May 26, 2003 to Dec 19, 2005.

Most the proceeds will go to the state's coffers to help finance the state budget. The remainder will be used as working capital, PTBA said, without specifying figures.

The shares are expected to be mostly bought by state-owned pension funds.

PTBA, which has large coal mining site in West Sumatra, booked net profit of IDR112.2 billion in the first half of the year ended June 30, up 78% from IDR63.1 billion in the year-earlier period.

PTBA had planned to offer 35% of its shares in the IPO, but reduced the amount following the Oct 12 bombings on Bali island, which damaged market sentiment. (*)