Indonesia's PT Harum Energy, a thermal coal miner, has indefinitely delayed a US$400 million initial public offering planned for this August due to market conditions, two sources involved in the deal told Reuters today.
Global markets have been shaky in recent weeks on growing concerns on the euro debt crisis as well as poor recent U.S jobs data, reinforcing fears about the recovery of the world economy and increasing investor caution on riskier assets.
"The company asked to delay the listing indefinitely," said a source close to the deal.
Harum Energy was not available for comment. Another source with direct knowledge of the deal said that the company sees market conditions as not supportive enough for the plan.
The sources declined to be identified because they were not allowed to speak publically on the matter.
Harum Energy is the second Indonesian company in a month to delay IPO plans after PT Molindo Raya Industrial, an ethanol producer, delayed its planned IPO in June as the company could not agree a valuation with potential investors.
Indonesia's stock exchange authority has said that Harum Energy had already submitted a request to sell a 28% stakes in new shares in mid-August and expected to get up to US$400 million in new funds.
The company, a part of Tanito Coal Group, had already appointed Goldman Sachs and Deutsche Bank as its international underwriters, and PT Mandiri Sekuritas and PT Ciptadana Securities as local underwriters.
Harum Energy expects to produce 6 million to 7 million tonnes of coal this year, according to a source from the company.
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