Apr 19, 2011

Indonesian tin miner sets IPO in Malaysia

The Bermuda-incorporated TMR Ltd, with a wholly owned subsidary of Indonesian tin miner dubbed PT Tenaga Anugerah (PTTA), is proposing to list its shares at Malaysia stock exchange called Bursa Malaysia's Ace Market.
TMR Ltd is a subsidiary of Malaysian publicly listed Malaysia Smelting Corp Bhd (MSC).
TMR has submitted its IPO document to the Securities Commisssion in Malaysia last week. According to the prospectus, TMR is planning to sell 90 million shares in the IPO, involving 60 million shares for private placement, 20 million shares for retail investor, and the remaining shares for employees.
TMR has yet determined the range of the IPO price. The company will use 60% of the proceed to finance refurbishment, conversion, and retrofitting of a bucket line dredge. About 28% and 8% of the proceed will be used for working capital of the group and defray estimated expenses relating to the listing process.
TMR's major shareholder is an Indonesian Eko Wijaya Parsito, who will be entitled with an indirect stake of 31.81% post the IPO.
Eko is the son of Hendry Parsito, who was previously the director of family-run tin mining business PT Sarana Marindo, which is also a unit of TMR.
Hendry in January was appointed as president commissioner of PTTA, which is a 99% subsidiary of TMR. Sarana is the holder of the Anggerik and Sampur concessions as well.
TMR's business is mainly in offshore exploration and mining as well as support activities for the production of tin in the Bangka Belitung Islands, Indonesia.
The group's mining operations have been undertaken by Tenaga Anugerah since 2006. Nowadays, resources under Anggerik and Sampur concessions are 14,297 tons and 14,020 tons respectively.
TMR's current tin resources is about 28,317 tons, out of which 25,766 tons are reserves that can support its mining operations for about eight years. TMR will have an enlarged and issued paid-up share capital of US$77.45 million comprising 387.25 million shares.

Disclosure: No position at the stock mentioned above.

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