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Adaro's coking coal subsidiary seeks up to $58 million from IPO
PT Adaro Minerals Indonesia is the coking coal mining subsidiary of PT Adaro Energy, the second largest coal miner in the country by output after PT Bumi Resources.
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Primary commodity: Coal is unloaded from a barge at the Suralaya coal power plant in Cilegon, Banten, on Sept. 22. Coal producers are currently enjoying a rise in the price of the commodity as a result of high demand. (AFP/Ronald Siagian)
C
oking coal producer PT Adaro Minerals Indonesia expects to raise up to Rp 831.67 billion (US$57.83 million) through an initial public offering (IPO) in December, mainly to maintain mining equipment.
Adaro Minerals, a subsidiary of Indonesia’s second largest coal producer by output PT Adaro Energy, plans to offer 6.04 billion new shares, equivalent to 15 percent of its enlarged capital, according to the prospectus released on Thursday.
The shares would be offered for between Rp 100 and Rp 125 apiece to raise a maximum Rp 756.07 billion. The company is ready to raise an additional Rp 75.6 billion by issuing another 604.85 million shares at the same price, should there be an oversubscription.
The company said that proceeds from the IPO would be loaned to subsidiary PT Maruwai Coal, which would use the funds to repair and upgrade coal mining infrastructure.
“This is in line with increasing coal prices and rising exploration costs in the development of mining techniques in Lampunut [Central Kalimantan], from 2022 to 2023,” the company said in the prospectus.
The remaining funds would be allocated to repay a principal loan from Adaro Energy. As of Aug. 31, Adaro Minerals had $186.9 million in debt from its parent company.
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