PT Adaro Energy, the holding company of Indonesia’s second-largest coal producer, may raise as much as 12.53 trillion rupiah (US$1.34 billion) in the country’s biggest domestic initial public offering (IPO).
The firm will sell as many as 11.14 billion new shares, or 35 percent of its enlarged capital, president Boy Garibaldi Thohir told reporters in Jakarta yesterday.
Adaro joins companies, including PT Indika Energy, which owns 46 percent of Indonesia’s third-biggest coal producer, in tapping the stock market for funds after prices of the fuel surged. Indika priced the shares at the top of a proposed range after investors sought 17 times the amount of stock on offer, the company said in an e-mailed statement yesterday.
The measure that tracks Jakarta’s 15 mining stocks has more than doubled in the past year while the key Jakarta Composite index rose 18 percent. Shares of PT Indo Tambangraya Megah, a unit of Thailand’s Banpu Pcl, have more than doubled since their Jakarta trading debut in December as record crude oil prices pulled coal prices higher.
Adaro will sell the shares in the range of 1,050 to 1,125 rupiah apiece, or 7.2 to 7.7 times the estimated earnings for next year, said the arranger of the sale, PT Danatama Makmur.
Shares of PT Bumi Resources, Indonesia’s largest coal producer, have quadrupled in the past 12 months and traded at 7,550 rupiah at the noon break in Jakarta, or 12 times the estimated earnings for next year, Bloomberg calculations show.
The company’s IPO will be the largest since November 1995, when PT Telekomunikasi Indonesia raised US$1.6 billion.