Toba Bara Sejahtra to IPO next year

Coal mining company PT Toba Bara Sejahtra, a subsidiary of Toba Sejahtra Group, plans to sell a portion of its shares to the public through an initial public offering (IPO) to be carried out in the second quarter, next year

Luhut Binsar Panjaitan, the founder and the chief commissioner of the Toba Sejahtra Group, said in Jakarta on Tuesday that the IPO would be carried out in April or May if the capital market showed more conducive condition.

He said that Toba Bara would become Toba Sejahtra Group?s first subsidiary to be listed on the stock exchange. Toba Bara has three coal mining subsidiaries, namely PT Adimitra Baratama Nusantara, PT Indomining and PT Trisensa Mineral Utama.

All Toba Bara?s coal units are located in Kutai Kartanegara regency, East Kalimantan

Luhut said that Toba Bara initially planned to launch its IPO this year but it was delayed due to the unfavorable condition in the stock market. The company expects to raise US$400 million from the IPO.

The company has named four securities companies including PT Mandiri Sekuritas, CLSA Asia-Pasifik, Citigroup and Morgan Stanley to prepare for the IPO.

This year, Toba Bara expects to produce between 6 and 7 million tonnes of coal. Next year production is expected to increase to 11 million tonnes. (giok)