Syailendra spends Rp 1.35 trillion for ABM Investama shares

Coal mining company PT ABM Investama?s initial public offering (IPO) has received a strong response from investors thanks to the company?s promising business outlook, Kontan reported Monday.

Syailendra Capital, a local investment company, is one of big investors which are interested in buying a large portion of the coal company?s shares to be sold in the IPO.

Syailendra?s president director Jos Parengekuan said in Jakarta last week that the investment company would buy up to 360 million shares or about 65 percent of the shares to be sold by PT ABM during the IPO at total transaction value of about Rp 1.35 trillion.

Jos said that Syailendra would cooperate with sovereign wealth funds (SFW) from Asian countries to buy the shares. He said that ABM shares would be quite promising for long-term investment given the bright prospect of the company?s coal mining business.

ABM Investama is offering 550.6 million new shares during the ongoing IPO, or about 20 percent of the company?s enlarged shares at a the IPO price of Rp 3,750 per share. The company expects to raise up tp Rp 2.1 trillion from the IPO.

About 67 percent of the IPO proceeds will be used to develop a coal mine in Aceh and its South Kalimantan coal mine with the remaining funds to be used to strengthen capital infrastructure. The company?s shares will be floated in the Indonesian Stock Exchange (IDX) on Dec. 6. (*)