Reuters reported that Indonesia's PT Berau Coal Energy has cut the size of its planned initial public offering to IDR 1.36 trillion from USD 310 million as it has secured other financing.
That means Berau is no longer set to be the country's biggest IPO in the two years since rival coal miner PT Bayan Resources raised USD 529 million.
Mr Vicky Ganda Saputra VP of investment banking at brokerage Danatama Makmur said that "Without our knowledge, the company has secured bigger loans than expected at about USD 850 million. Therefore Berau decided to sell a smaller stake."
He said that the company has set a price of IDR 400 per share for the initial public offering, at the top end of its IDR 300 to IDR 400 price range.
The company will sell 3.4 billion new shares, equivalent to 8.83% of the expanded share capital. It initially planned to sell 7 billion shares.
Berau plans to offer the shares to the public between August 10th 2010 and August 12th 2010. The shares are due to start trading on the Indonesia Stock Exchange on August 19th 2010.
The price means that the company is valued at USD 1.7 billion, putting it well behind top coal miner PT Adaro Energy, which has a market capitalization of USD 7.07 billion.
Berau told Reuters in May 2010 that it aimed to raise USD 1 billion this year through bonds, loans and IPO. It has managed to secured USD 450 million bonds and USD 400 million loans so far.
(Sourced from www.reuters.com)
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