Nov 10, 2010

Borneo Energi IPO price at Rp1,170

The only hard coking coal producer in Indonesia PT Borneo Lumbung Energi & Metal Tbk (BORN) has determined the IPO final price at Rp1,170 per share, while demand is estimated to obtain 8 folds  demand from investors during the IPO.
A source familiar with the matter said considering the strong demand, Borneo has firmlly jacked up the IPO size from 20% stake or 3.32 billion new shares to 25% stake or 4.4 billion shares
Borneo has set the IPO price at Rp980-Rp1,280 per share, to snap up Rp3.26 trillion-Rp4.26 trillion from the IPO of 3.33 billion new shares.
CIMB Securities, Credit Suisse, and Morgan Stanley are the IPO underwriters for Borneo Lumbung Energy.
BORN plans to use 50% of the IPO proceed for debt refinancing, to Sinarmas Sekuritas, CIMB Bank, and RZB Bank.
Borneo has secured 1 year contract to supply 1 million tons coking coal to Zhonglian Resources. Borneo is in talks with one Chinese buyer to supply another 1 million tons and one Taiwanese buyer for 3 month contract. 

Disclosure: No position at the stock mentioned above.

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