PT Borneo Lumbung Energi, holding company of coking coal mining PT Asmin Koalindo Tuhup, South Kalimantan, has mandated CIMB Securities, Credit Suisse, and Morgan Stanley as lead underwriters of initial public offering (IPO).
A source familiar with the matter said Borneo Energi will offload 20%-25% shares into the market and target US$200 million-US$300 million of cash from the IPO scheduled in August 2010, a delay from initial schedule in the first half this year.
"Borneo will utilize April's financial report as a basic of the shares sale. It may probably in August. Kick-off meeting with three underwriters had been held on Tuesday last week," the source told Insider Stories.Borneo, which is affiliated with Renaissance Capital that is led by Indonesian Samin Tan and tried to buy 100% stakes in PT Kaltim Prima Coal and PT Arutmin indonesia in 2006, will offload 20%-25% shares into the market, in line with capital market bounce back and soaring price of coking coal. Borneo now produces around 200,000 tons of coking coal.