Indonesia Adaro plans up to US$80m IPO paper
Source: 10-MAY-2008 Intellasia | Reuters
May 10, 2008 - 7:00:00 AM Indonesia's PT Adaro Energy plans to raise up to US$800 million through an initial public offering, a leading financial daily reported on Thursday.

PT Adaro Energy is the parent company of PT Adaro Indonesia, the country's second-largest coal producer.

The proceeds will be used to buy PT Adaro Indonesia's shares from foreign shareholders, to repay debt and finance expansion, Adaro Energy director Andre Mamuaya told Bisnis Indonesia.

"The minimum target for Adaro Energy's IPO is US$500 million, but it might reach US$800 million," Mamuaya said.

The paper said Adaro Energy submitted the listing application to Indonesia's main stock exchange on May 6 and the IPO will be held early in July.

PT Danatama Makmur will be the lead managing underwriter. Adaro Energy has also appointed UBS AG, Morgan Stanley and DBS Vickers Securities to help underwrite the offering.

The mining firm is one of several Indonesian companies planning IPOs this year.

Indonesian firms raised a total of 17.5 trillion rupiah from IPOs in 2007, nearly six times the amount in the previous year.

Indonesia is the world's largest exporter of thermal coal and is expected to export 170 million tonnes of coal this year and 190 million tonnes in 2009.

Coal prices have surged in recent months on tight supplies and stronger demand from power utilities which are looking for alternatives to increasingly expensive oil.