Release: Straits Asia Resources Ltd launches IPO
Thursday, October 26 2006 - 07:43 AM WIB
Straits Asia is a subsidiary of Straits Resources Limited, a diversified resources group which is listed on the Australian Stock Exchange.
The IPO comprises an offer of 320 million existing shares, or 34.8% of the company?s issued share capital, by the selling shareholder, Straits Bulk and Industrial Pty Ltd (SBIL), a wholly owned subsidiary of Straits Resources, subject to an over-allotment option granted by SBIL and exercisable by Macquarie Securities (Singapore) Pte Limited.
The IPO consists of an international offering to institutional and other investors in Singapore and overseas, as well as a Singapore public offer to domestic retail investors. The minimum size of the Singapore public offer is 14 million shares
Singapore public offer begin on October 2006 at 7.00 pm, and will close on 31 October 2006 at 12 noon. Trading is expected to commence on 3 November 2006. The company is expected to be listed on the main board of the SCX-ST
The maximum offering price for the IPO is S$0.72 per offering share. At the maximum offering price, the IPO would raise total proceeds of S$230.4 million. The final offering price will be determined by way of a bookbuilding process by agreement among Macquarie Securities (Singapore) Pte Ltd, SBIL and the company and is expected to be fixed on 31 October 2006.
Macquarie Securities (Singapore) Pte Limited is the issue manager of the IPO and Macquarie Securities (Singapore) Pte Limited is the sole global coordinator, bookrunner and underwriter.
Straits Asia owns and operates the Sebuku coal mine in South Kalimantan, Indonesia. Sebuku thermal coal is exported to a customer base comprising mainly industrial and utilities users in Asia. In 2005, Sebuku produced approximately 3.0 million tonnes (MT) of coal. It plans to increase its production to approximately 3.5 MT in 2006 and about 4.0 MT in 2007. As of May 31, 2006, Straits Asia reported estimated coal reserves of approximately 28.3 MT and coal resources of about 73.3 MT at its Sebuku concession area.
The company, which has been operating in Southeast Asia for more than nine years, is led by an experienced management and operations team with a business track record of more than 30 years in the Asian region.
Reflecting the company?s business growth, Straits Asia achieved sales revenue of US$159.2 million and profit for the year of US$44.4 million for the financial year ended December 31, 2005. In the first half of FY2006, the company recorded sales revenue of US$147.6 million and total profit for the period of US$26.5 million. (end of release)