PT Berau Coal Energy, parent company of Indonesia's fifth largest coal mine PT Berau Coal, plans to offload 18.2% of new shares or 7 billion shares into the stock market in a bid to grab US$100 million-US$200 million in cash.
Berau Coal Energy's initial public offering (IPO), scheduled on August this year, is advised and underwritten by Danatama Makmur and Recapital Securities for the domestic market, while Credit Suisse Securities and JPMorgan Securities are the IPO's global book runners and underwriters.
According to Director Indonesia Stock Exchange Eddy Sugito, Berau Coal Energy has submitted the IPO documents end of last week.
Assuming the IPO of 18.2% shares is US$100 million-US$200 million for 18.2% shares, Berau Coal's equity value is around US$549.45 million-US$1.09 billion. With its net debt of Rp2.25 trillion, enterprise value of Berau Coal may reach Rp7.2 trillion-Rp12.1 trillion.
Berau Coal Energy is transformation of PT Bukit Mutiara which accomplished acquisition of 100% stakes in PT Risco worth US$1.5 billion in February 2010.
Risco is holding company of PT Armadian Tritunggal, controlling 90% stakes in Berau Coal. Risco, founded on September 7 2005, was initially owned by Selviya Risjad (10%) and Rizal Risjad (90%). Both are sons of Indonesian conglomerate Ibrahim Risjad.
In May 2006, Handy Purnomo Soetedjo acquired 10% stakes in Risco from Selviya Risjad and Rizal respectively.
Adding to that, Garibaldi Thohir, President Director of PT Adaro Energy Tbk (ADRO), bought 15% stakes from Rizal. In result, Risco was owned by Rizal (65%), Handy Purnomo (20%), and Garibaldi Thohir (15%). Now, Bukit Mutiara has acquired 100% stakes in Risco from Rizal, Handy Purnomo, and Garibaldi Thohir.