Aug 19, 2010

Berau Coal Energy rises 32.5% on debut

Publicly listed coal mining company PT Berau Coal Energy Tbk (BRAU) rises 32.5% to Rp530 per share on its trading debut at Indonesia Stock Exchange this morning.
BRAU has offloaded 3.4 billion shares, 10.79% of its total outstanding 31.5 billion shares, into the primary market at Rp400 per share.
From the 3.40 billion shares, 70% was allocated for local and foreign investor institutions while the rest was allocated for individual investors.
From the IPO for about Rp400 per share, 1.36 trillion of cash will be used for capital expenditure and Maple Holdings Ltd acquisition through Seacoast Offshore Inc, Berau subsidiary.
Maple, subsidiary of Regulus International Pte Ltd, will hold the marketing rights of PT Berau Coal, Berau Energy subsidiary business.
Regulus owned by Bukit Mutiara, parent of Berau Energy, managed by PT Recapital Advisors. Demand for 2% of Berau Enegy from retail investor via pooling is experiencing excess demand to 40.9 times or almost Rp1.2 trillion.
"During the offering period in Jakarta, Surabaya and Medan on 10-12 August, total demand were beyond expectation up to 40.9 times," said director of exclusive Investment Banking PT Danatama Makmur, Vicky Gandasaputra, lead underwriter for Berau Energy IPO, few days ago. Berau Energy has set 68 million shares or 2% through pooling allotment. 

Disclosure: No position at the stock mentioned above.

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