Jul 21, 2010

Berau Coal sets IPO price Rp300-Rp400

PT Berau Coal Energy has set price of initial public offering (IPO) at Rp300-Rp400 per share, allowing it to grab cash of Rp900 billion-Rp1.2 trillion.
In a public statement today, Berau Coal aims to offload 3 billion shares during the IPO, scheduled on August 19 2010.
Berau Coal plans to use 8% of proceed from the IPO to bankroll acquisition of Maple Holdings Limited stakes from Regulus International Pte Ltd worth US$200 million.
In the IPO prospectus published few days ago, Berau Coal Energy, which is now wholly owned by PT Bukit Mutiara, special purpose vehicle (SPV) of PT Recapital Advisors, aims to use 92% of the IPO proceed to fulfill working capital requirement.
Berau Coal Energy will lend the IPO proceed to its wholly owned subsidiary Seacoast Offshore Inc to acquire Maple Holdings. The 5 year loan will be charged with a 2.5% annual interest rate. Maple Holdings is SPV company founded in Labuan, Malaysia. Maple has 10 year rights of coal marketing from Berau Coal to overseas market excluding Japan.
PT Danatama Makmur and PT Recapital Securities are mandated to underwrite Berau Coal IPO. Credit Suisse Securities and JPMorgan Securities also help marketing in the global market.
Disclosure: No position at the stock mentioned above.

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