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Adaro eyes largest-ever IPO in RI
PT Adaro Energy, the holding company of the country's second largest coal miner, will price its stocks at between Rp 1,050 (11 US cents) and Rp 1,125 per share for its planned initial public offering, the lead underwriter says
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PT Adaro Energy, the holding company of the country's second largest coal miner, will price its stocks at between Rp 1,050 (11 US cents) and Rp 1,125 per share for its planned initial public offering, the lead underwriter says.
If those share prices stand, the initial public offering would result in at least Rp 12 trillion in proceeds, making it the country's largest-ever IPO. The current largest IPO involved PT Indosat, the nation's second-largest telecom firm, which raised US$1.05 billion in 1994.
Vicky Ganda Saputra of PT Danatama Makmur, Adaro's lead underwriter, said Monday that under its IPO plan, the company would put 11,139 billion shares, or about 34 percent of Adaro's total shares, on sale from June 24 to 26.
Vicky said the shares would be listed on the Indonesian Stock Exchange on July 2.
Boy Garibaldi Thohir, Adaro's president director, said part of the proceeds would be used to settle the company's debts of $100 million, expand subsidiaries and consolidate its business units.
Adaro is 36 percent owned by a group of foreign investors including Goldman Sachs, Citigroup, Farallon Capital, the Government of Singapore Investment Corporation and the Kuok Group.
Teddy P. Rachmat, one of Indonesia's wealthiest businessmen, and Saratoga Capital, each own 32 percent.
Adaro has set its revenue target this year at Rp 16 trillion with a net income of Rp 1.5 trillion.
The company's revenue rose to Rp 11.5 trillion last year from Rp 9.7 trillion in 2006. Its net income dropped slightly to Rp 133 billion last year from Rp 141 billion in 2006.
"We believe we can reach our target because coal prices have more than doubled from around $50 per ton last year to about $130 a ton in the first quarter of 2008," vice president director Christian Ario Rachmat said.
Christian said the company hoped to produce 38 million tons of coal by the end of this year, from last year's 36 million tons.
"By 2009, we want to increase production volume to 45 million tons. By 2012, we plan to increase production capacity to 80 million tons," Christian said.
Christian said the company planned to spend $500 million to build a 68-kilometer conveyor belt and an independent power plant with a total capacity of 60 megawatts to transport 40 million tons of coal a year.
"A quarter of the spending will come from our own pockets, while the remaining 75 percent will be funded by loans," he said.
Adaro has already secured $145 million from the International Financing Corp. of America, a subsidiary of the International Monetary Fund, to fund the power plant project. (anw)
