Dec 9, 2010

Bumi Minerals surges 13.39% on debut

Gold, zinc, and led miner PT Bumi Resources Mineral Tbk (BRMS) surged 13.39% to Rp720 per share during the trading debut today.
Referring to the market price, Bumi Minerals' market capitalization is now Rp13.08 trillion. The company previously set the final price of intial public offering (IPO) at Rp635 share, the top level of the price range.
Bumi Minerals, wholly owned subsidiary of PT Bumi Resources Tbk (BUMI), reduced the IPO size to 3.3 billion shares of its enlarge capital from the initial size of 4.32 billion shares
Considering the final price, Bumi Minerals grabbed Rp2.09 trillion proceed from the IPO. Danatama and Nomura Indonesia has been mandated as lead underwriters the IPO, while Credit Suisse, JP Morgan and Nomura International will act as international selling agents.
Bumi Minerals  will use the IPO proceeds to pay all the Calipso’s debt amounting US$150 million stated in the loan agreement with Bright Ventures Pte Ltd. Callipso Investment Pte Ltd is a subsidiary of Bumi Minerals.
The loan is a short-term loan used to finance some of the capital expenditures and working capital of subsidiaries, namely BM, CPM and GM, as well as for working capital of the company.
Besides, the remaining proceeds will be used as part of the additional working capital. The fund generated from the issuance of Series I warrants will be used to finance the exploration activities.

Disclosure: No position at the stock mentioned above.  

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