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zhuge_liang Supreme	03-Jul-2007 13:23        zhuge_liang About Contact  Quote this Post!
x 0   x 0  Alert Admin	Indonesia's 2nd-largest coal producer, PT Adaro Indonesia, plans to raise around US$500 million in what could be the country's biggest IPO, a source familiar with the deal said. Adaro aims to sell a 25-30% stake on SGX this year, with the proceeds to be used to expand the business, the source told Reuters. Last month, Indonesian media firm PT Media Nusantara Citra Tbk (MNC) raised US$419 million in the largest IPO in 4 years in Southeast Asia's biggest economy. "The size of the (Adaro) IPO would be bigger than US$500 million. I expect the company to be priced maybe 20-30% lower than Bumi," the source said. Coal prices have nearly doubled in the past 3 years due to limited Australian export growth and rapidly rising demand from China and India to feed their booming economies. PT Bumi Resources Tbk , which has a market capitalisation of US$5.26 billion, trades on a multiple of around 20x forecast '07 earnings. Shares in Bumi have traded in a fairly narrow range for several years, but have more than doubled this year to change hands at around 2,400 rupiah each as demand for coal surged. In Jun an Indonesian government official said domestic coal demand will double in the next 3 years to reach 90 million tonnes by '10. Bumi Resources, which is controlled by the family of Indonesian chief social welfare minister Aburizal Bakrie, is Indonesia's biggest coal producer with coal production of around 52 million tonnes last year. Adaro produced 34.3 million tonnes of coal last year. Despite the strong rise in the past half decade, valuations on the Jakarta market are still below levels seen prior to the Asian financial crisis. Indonesia, which has surpassed Australia as the world's biggest exporter of thermal coal, produced 193.5 million tonnes last year and output is expected to rise 10% to around 214 million tonnes this year, an industry group said last month.
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