ASEAN KEY DESTINATIONS
Indonesia’s Bayan aims at higher 2009 coal output
Indonesian coal miner Bayan Resources, which is selling $529 million worth of shares in an IPO, expects its coal production to reach 13-14 million tonnes next year, up from 9 million tonnes this year, said Reuters on Wednesday.
Bayan’s president director Eddie Chin was quoted as saying that his firm expected to sell between 1-2 million tonnes more coal than its produced next year, by sourcing from third parties.
Chin also said he estimated the company would book revenue of between $700-750 million this year. He did not give an outlook for this year’s net profit or other financial forecasts for 2009.
“Financing for (additional) investments have been covered by the IPO,” Chin said when asked if the company would need extra investment to increase output.
Bayan is offering new and existing shares at 5,800 rupiah ($0.64) a share, close to the bottom end of the 5,600-7,700 rupiah indicated price range, and valuing Bayan at around $2.1 billion. Underwriter Trimegah Securities had said the pricing valued Bayan at about six times its 2009 earnings.
A total of 833 million Bayan shares, including 333 million new shares and 500 million from existing shareholders, are being offered for sale. The company’s free float would be about 25 percent of the enlarged share capital.
Three individual shareholders, Bayan’s founder Low Tuck Kwong, Jenny Quantero, and Engki Wibowo, are selling a total of 500 million shares, the company said.
The underwriter has the option to sell an additional 83 million shares after the end of the offer period, and another 137.5 million shares within 30 days after the listing, increasing the free float to 31.6 percent.
Bayan has said it would offer its shares for sale between August 6-8 and list on the Indonesia Stock Exchange on August 12.
Low Tuck Kwong controls 75 percent of Bayan, while the husband-and-wife team of Wibowo and Quantero, both directors at Bayan, hold the rest.
Proceeds from the sale of the new shares will be used to help finance expansion, while proceeds from the sale of existing shares will go to the selling shareholders.
Indonesia is the world’s largest thermal coal exporter and miners in the Southeast Asian country have gained from strong demand from China and India and record high coal prices.
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