Trans Power to launch IPO next month

PT Trans Power Marine (TPM), a shipping firm focusing in coal transportation, plans to sell 395 million new shares or about 15 percent of its enlarged shares to the public next month to raise funds for the expansion of the company?s shipping fleet.

The company plans to sell the new shares at an offering price of between Rp 220 and Rp 250 per share during the offering period in the middle of February. With such offering price range, the company expects to raise between Rp 86.9 billion and Rp 98.75 billion from the IPO.

TPM?s President Director Daniel Wardojo said in Jakarta on Monday that the proceeds from the IPO would be used to partly finance the purchase of new tug boats. He said that in order to further strengthen the company?s shipping fleet, TPM plans to buy between four and seven tug boats and a floating crane.

At present, the company operates 30 ships including tug boats, mostly used for coal transportation.

He said that TPM would need between US$30 million and $40 million in capital expenditures this year to support operating activities and fleet expansion plan. About 30 percent of the total expenditures would be sourced from IPO proceeds and the other 70 percent from bank loans. (*)