PTBA will formally register IPO plan this week

State owned coal mining company PT Tambang Batubara Bukit Asam (PTBA) will formally register for its initial public offering (IPO) this week at the Capital Market Supervisory Agency (Bapepam), one of the company?s executive, Ismet Harmaini, said as reported by Bisnis Indonesia daily on Wednesday.

"There is no delay in the IPO plan but we are still waiting for the government?s regulation to launch the privatization plan," he was quoted as saying by the newspaper.

According to an initial plan, the coal producer which is based in Tanjung Enim, South Sumatra, will sell about 35 percent of its shares to the public as part of the government?s privatization program. It is not certain, however, if the 35 percent of the shares to be offered to the public will comprise new shares or old shares.

"It depends on the decision of the State Minister for State Enterprises whether we will sell 30 percent or 35 percent," he said, adding that 30 percent of the shares which would be sold during IPO would be allocated to foreign investors.

PTBA Asam has appointed state owned securities company PT Danareksa Sekuritas to coordinate the sales for local investors and PT BNP Paribas Peregrine to handle the sales of shares to foreign investors.

Meanwhile local newspaper Sumatera Ekspres reported on Wednesday that the legislative council (DPRD) of Muara Enim regency had approved PTBA privatization. However, the local legislators demanded the government to allocate part of the shares to the local authority.

The legislators also demanded the coal mining company to continue its community development program despite its privatization. (*)