Garda Tujuh IPO 70% shares

Coal mining company PT Garda Tujuh Buana plans to sell 70 percent shares to capital market through initial public offering (IPO) targeted to rake up at least IDR200 billion fund.
The company has appointed PT Bahana Securities to be the underwriter and prepare IPO document to submit to the Captial Market and Finance Institution Supervisory Agency (Bapepam-LK).
My source said the IPO is scheduled in semester II so that the fund could be allotted as the working capital in 2009.
"The better momentum of capital market situation is used by the company to generate fund from IPO. The target is about IDR200 billion using the report as per December 2008," he said to me yesterday.
Director of Bahana Securities Andi Sidharta conceded the IPO scheme of Garda Tujuh.
"So far as I know, the prospectus has been submitted to Bapepam-LK," he said.
Garda Tujuh produces low calorie coal as that of produced by
PT Adaro Energy Tbk through Wara Coal. As per December 2008, the production capacity of Garda Tujuh was over 3 million tons of coal per year.
Garda Tujuh is the only coal company in Indonesia having and applying technology to reduce the water content in coal.
Analyst of PT CIMB-GK Securities Indonesia Rania Rahmundita maintained neutral rating for coal sector in Indonesia despite the financial crisis faced by the global coal consumption growth.
In the research as per 20 April, she estimates the coal price in 2009 is worth US$70 per ton and might increase by 2010 into US$90 per ton along with the soaring demand of coal.