Sunday, February 7, 2010

Borneo & Harum Energy plans to IPO

Two holding coal mining firms, PT Borneo Lumbung Energi and PT Harum Energy, plan to raise money from the stock market in semester I/2010 targeting to tap some US$500-700 millions proceeds.
Borneo Energi targets to tap some US$200 -US$300 million proceeds and Harum Energy US$300 -US$400 million. Borneo, with 100 percent share ownership of PT Asmin Koalindo Tuhup in Central Kalimantan, is the coking coal mining company which will sell 20-25 percent shares to market. Harum Energy, possessing PT Tanito Harum, is the thermal coal company for power plant supply, is possibly to sell 30 percent shares to market in the IPO.
Borneo appointed CIMB Securities as the underwriter for domestic and regional markets which will be possibly assisted by Sinarmas Sekuritas. The company is in process of underwriter selection to handle the IPO at international market. It might go to the Morgan Stanley Asia Indonesia.
Borneo will use some of the IPO generated proceeds to increase the production capacity of 3.6 million tons into 5 million tons per year.
Asmini Tuhup now produces 2.4 million tons of coal per year. It has been processing the purchase of supplementary equipment and improving infrastructure to bolster the capacity of 3.6 million per year before August this year. The coking coal produced by Asmin Tuhup is 8,200 kcal and the commodities here go to export markets. The hard coking coal price now is US$175 per ton. The total of resources quantity of the mining is 240 million tons of coal.
Harum Energy appointed four underwriters, namely Goldman Sachs, Deutsche Securities, Mandiri Sekuritas, and Ciptadana Securities. Goldman and Deutsche will later help sell the shares to overseas market, and Mandiri and Ciptadana for domestic markets.

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