Feb 11, 2011
Indonesian coal miner Riau Bara Harum aims to raise up to $500 million from an initial public offering (IPO) in the second half of the year, to tap investor demand in the world's biggest thermal coal exporting nation, sources with direct knowledge of the deal told Reuters on Feb 10.
The IPO would offer investors another opportunity to tap into high calorie coal assets, and could be the biggest thermal coal listing in the country for three years since PT Bayan Resources raised $529 million in 2008.
Riau Bara Harum, which has an estimated 200 to 300 million tonnes of reserves with a calorific value of between 6,100 to 6,200 kcal/kg, owns more than 24,000 hectares of mining areas in Riau on Sumatra island, said one of the three sources.
The firm aims to raise up to $500 million in order to expand its business as it has very little production at the moment, said another of the sources briefed on the IPO, adding that the firm expects to sell a 20 to 25 percent stake.
More private and state-owned firms are coming to the market this year to tap investor demand for Indonesian assets, though worries over inflation have driven the stock market down 9 percent this year after a 46 percent rally in 2010. (sourced:reuters)
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