Toba Bara expects to raise Rp763b from IPO

PT Toba Bara Sejahtra (TBS), a holding company of three coal miners in East Kalimantan plans to float 15 percent of its enlarged capital at trading floor, hoping to raise up to Rp 763.12b (US$80 million)

?We have discussed with underwriters and we think that 15 percent is suitable for the current condition;? finance director Pandu Sjahrir said as quoted by The Jakarta Post.

Toba Bara has appointed PT Mandiri Sekuritas, PT Morgan Stanley Asia Indonesia and PT CLSA Indonesia to be underwriters for the offering.

TBS is a holding company of PT Adimitra Baratama Nusantara (ABN), PT Indomining (IM) and PT Trisensa Mineral Utama (TMU), three companies with adjacent concession areas located in Sanga-Sanga, Loa Janan and Muara Jawa in the province of East Kalimantan with total concession of 7,087 hectares.

About 15 percent of the funds to be raised from the IPO will be used to pay loans amounting to US$35 million from BNP Paribas that will mature in 2014.

The company is also planning to use 50 percent of funds to be raised as capital expenditure for the development of infrastructure and other supporting facilities in its mining concessions.

The remaining 35 percent will be used to finance acquisitions of coal mining sites.

?We have several acquisitions in the pipeline. However, we cannot reveal it now,? Pandji said.(*)