Two securities houses acting as lead underwriters of publicly listed PT Berau Coal Energy Tbk (BRAU) have provided a full commitment to underwrite 3.16 billion of shares worth IDR1.26 trillion during initial public offering (IPO).
PT Danatama Makmur and an affiliated local house PT Recapital Securities are Berau Energy's IPO underwriters.
In the IPO prospectus published by Berau Energy today, the commitment for the IPO has reached 92.85% of 3.40 billion shares to be offloaded during the IPO.
Berau Energy plans to offload 3.4 billion of shares or 9,74% during the IPO at Rp400 per share, allowing it to snap up IDR1.36 trillion of cash. Around 44 local securities houses also involve as underwriters during Berau Energy's IPO.
According to the prospectus, Berau Energy will use 17.56% of the IPO proceed as part of acquisition financing of 100% stakes of Maple Holdings Limited by Seacoast Offshore Inc from Regulus International Pte Ltd.
Based on a conditional shares sale and purchase agreement between Berau Energy, Regulus, and Seacost, Berau Energy has agreed to acquire Maple at US$200 million.
Berau Energy will use 82.44% of the IPO proceed to underpin capital expenditure, such as developing business expansion in 2010 to 2014, boost plant capacity, loading conveyor, and hauling road in coal mine sites namely Lati Binungan and Sambarata.
Disclosure: No position at the stock mentioned above.
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