One of Indonesia's thermal coal miner PT Harum Energy Tbk, controlled by Indonesian tycoon Kiki Barki, plans to dispose 650 million shares or 24.7% during initial public offering (IPO) scheduled on October 6 2010.
Based on the IPO prospectus published today, Harum Energy has mandated two lead underwriters PT Ciptadana Securities and PT Mandiri Sekuritas.
Harum Energy also determined to provide green shoe or over allotment of a maximum 65 million shares during the IPO when the market demand outstrips the IPO size.
Harum Energy plans to use the IPO proceed worth US$50 million to develop coal production in its subsidiary dubbed PT Santan Batubara, which also subsidiary of PT Indika Energy Tbk (INDY), in 2010 and 2011.
About US$30 million of the proceed will be utilized by Harum Energy to bankroll business development, maintenance, and purchase of 20 boats to jack up coal capacity transportation in 2010 and 2011.
The company also plans to use US$15 million of the proceed for working capital, including coal mining contractor belong to its subsidiary in 2011 and 2012. A certain amount of the remaining proceed will be used to exploration, pay some of DBS debt facility, and support acquisition and other projects.
Harum Energy posted Rp894.7 billion revenue in the first quarter of this year. In 2009, it booked Rp4.60 trillion revenue. Operating profit reached Rp163.6 billion in the first quarter of this year and Rp134.1 billion net profit.
Post IPO, PT Karunia Bara Perkasa will control 75.84% stakes in Harum Energy, PT Bara Sejahtera Abadi to hold 0.09%, and the public share holders will hold 24.07% (excluding green shoe).
Disclosure: No position at the stock mentioned above.
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