Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Investment  >>   Indonesian mining IPO oversubscribed
NEWS UPDATES Asean Affairs   6 December 2010

Indonesian mining IPO oversubscribed

Related Stories

November 26, 2010
Lack of transparency in Indonesian IPO

November 23, 2010
Indonesian Government and House Want IPO Probe

November 16, 2010
Indo rupiah declines on capital inflow alert

November 9, 2010
Indonesia offers Inalum to investors

The initial public offering of Bumi Resources Minerals, a unit of the coal mining giant Bumi Resources, was oversubscribed by 29.89 times as investors searched for high returns in the mining sector, the company said in a statement on Sunday.

The coal miner offered its stock at Rp 635 (7 cents) per share and for every three shares investors bought, the company also offered two warrants, which entitled investors to buy the company's stock at Rp 700 per share after May 2011 for a period of three years.

BRM expected to raise Rp 3.6 trillion ($400 million) from floating 3.3 billion shares, or 18.16 percent, of the company's total shares on the stock market, and issuance of 2.2 billion of warrants.

"The market sees that the mining industry, such as gold, zinc, copper, tin, ore, diamond and other minerals has good prospects and potential of high growth," said Kenneth Patrick Farrell, president director of BRM.

"Investors are very enthusiastic of BRM's shares," said Vicky Ganda Saputra, executive director of Danatama Makmur, the lead underwriter of the IPO.

Vicky said BRM's offering attracted at least 2,200 individual investors in three days of its offering period from Nov. 30 to Dec. 2.

BRM has appointed Danatama Makmur and Nomura Indonesia as the underwriters for the stock sale. Credit Suisse, JP Morgan and Nomura International will be the international selling agents.

"The fund from this issuance will be used for driving growth of BRM's mining assets more optimally," said Yuanita Rohali, BRM's finance director.

BRM, a spin-off of Bumi Resources, was established to unlock the potential of its parent's non-coal assets.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand