Last week's initial public offering of PT Adaro Energy, the holding company of the country's second-largest coal producer, was 5.01 times oversubscribed, says the lead underwriter of the IPO.
Amid such a strong interest in the offering that took place July 8-10, Houston Jusuf, managing director of PT Danatama Makmur, which is acting as Adaro's managing underwriter, said in a media statement released Sunday that 74.77 percent of commitments came from overseas.
The remainder has been allocated for domestic investors, both retail (15.8 percent) and institutional (84.2 percent), Houston added.
"By looking at the results of the IPO, as well as the current coal industry factors which are very good, we are optimistic the share price will become attractive in the market," Houston said.
The company is scheduled to list its shares on the Indonesia Stock Exchange (IDX) on July 16.
Bloomberg earlier reported that Goldman Sachs Strategic Investments Asia LLC., Cayman Islands-based Adcorp Holdings, Singapore-based Atticus Investment Pte and Citigroup Global Market Ltd. would all bid for a stake in the offering.
As for domestic institutional investors, included among them are PT Schroder Investment Management Indonesia and PT Samual Assets Management.
Vicky Ganda Saputra, vice president of Investment Bank at Danatama Makmur, confirmed Sunday the allotment of stakes to those investors.
"We are happy with the robust interest from investors. I guess the fact that the (coal) industry is promising has a lot to do with it," Vicky said, citing the prices of thermal coal in the global market now hovering at more than US$190 per metric ton, far higher than $130 to $150 set during the book building period.
Adaro is one of the largest integrated coal mining companies in the country, with a total mining area of 34,940 hectares. It has a production capacity of 40 million tons of coal a year and plans to increase it to 80 million in the next five years.
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