Toba Bara to float shares amid weakening market
Tuesday, June 5 2012 - 03:35 AM WIB
East Kalimantan coal mining group PT Toba Bara Sejahtra (TBS) plans to float 15 percent shares at the IDX on July 10 in a bid to increase production to 11.1 million tonnes in 2014 from 5.2MT in 2011.
According to the company?s prospectus released Tuesday, TBS has three mining concessions in Kutai Kartanegara regency, namely PT. Adimitra Baratama Nusantara (ABN), PT Indomining and PT Trisensa Mineral Utama. The three concessions cover an area of around 7,000 hectares with proven reserves of 86 MT, probable reserves of 61 MT and resource of 236 MT.
Morgan Stanley, CLSA and Mandiri Sekuritas act as joint underwriter for the IPO.
TBS is controlled by Luhut Pandjaitan, a retired general-turned businessman who is also a former minister of industry.
According to the prospectus, the company sells most of its coal to export market through traders such as Vitol, Flame and Glencore.
The company currently sells four brands of coal; ABN 52 and ABN 58 with CV of 5,200 kcal/kg and 5,800 kcal/kg GAR, respectively, Indomining (5,700 kcal/kg GAR) and Trisensa-47 (4,700 kcal/kg GAR).
The company is conducting IPO amid the tumbling coal shares at the IDX due to weakening global thermal coal price and fear that government might soon impose export tax or slap quota on coal export.
Editing by David Mustakim