Jan 24, 2011

Buana Listya Tama sets US$150 mio IPO

Very large carrier operator PT Buana Listya Tama is planning to dispose shares via initial public offering (IPO) with a target proceed of US$120 million.
Buana Listya Tama is wholly owned subsidiary of PT Berlian Laju Tanker Tbk (BLTA). A source close to the deal said Buana Listya Tama may mandate Danatama Makmur, J.P.Morgan Securities, Deutsche Bank, and Standard Chartered Securities.
"Let's wait for the official announcement," said Vicky Ganda Saputra, Director of Investment Banking at Danatama Makmur, without giving further detail information.
Eddy Sugito, Director of Indonesia Stock Exchange, confirmed that Buana Listya Tama plans to go IPO. "We haven't known about the target proceed. Mini expose is scheduled tomorrow."
Buana Tama was established in 2005 as a domestic shipping company under group of Berlian Tanker, one of the world’s largest chemical tanker operators specialized in transporting liquid cargoes.
Buana Tama began its endeavor in the shipping business catering international and domestic routes and built its reputation as a professional shipping company in Indonesia.
The subsidiary started out the business with a range of oil tankers and gas tankers, designed and dedicated to carry crude oil and oil products as well as gas products such as LPG.
It also owns and operates a very large gas carrier, MT Gas Komodo, and also became the first domestic shipping company that operates such vessel in Indonesia.
With years of experience catering numerous local and international clients, mostly global oil and gas majors, Buana Listya Tama has taken the standards of international shipping into domestic waters.
In 2005, the government of Indonesia issued a Presidential Decree which regulated the implementation of Cabotage Principle, and consequently it has resulted in the opening of  significant opportunities in favor of the domestic shipping industry.
This policy endorses the development of the local shipping industry by limiting the participation of foreign owners while at the same time provides wider business opportunities for local shipping companies to grow within domestic market.

Disclosure: No position at the stock mentioned above.

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