Nov 9, 2011

ABM sets IPO at Rp3,250-Rp4,650

Energy integrated PT ABM Investama Tbk has put an initial public offering within the price range of Rp3,250-Rp4,650 per share, entitling the company with a proceed of Rp1.79 trillion-Rp2.56 trillion.
Director Iman Rachman at PT Mandiri Sekuritas, one of ABM's lead underwriters, said  the range is reflecting a 7.5-10.8x of estimated price to earning ratio this year.
"We believe the range is rational despite ABM has run three different of businesses," he said as quoted by Bisnis Indonesia today.
Along with coal mining, ABM Investama has also run power plant and mining contracting services. A mining company at Indonesia Stock Exchange is traded at 8.5x of PER. Mining contracting services and power plan-based companies are noe traded at 9.9-13.3x of PER.
At Indonesia Stock Exchange, ABM Investama's businesses are similar with energy integrated company PT Indika Energy Tbk (INDY). Indika yesterday was traded at 17.01x of PER. By the end of 2011, Indika is estimated to have 9.5x of PER.

Disclosure: No position at the stock mentioned above.

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