Adaro plans IPO in Q4

The Jakarta Post | Tue, 03/11/2008 1:37 AM

Indonesia's second largest coal producer, PT Adaro Indonesia, is planning to unload some of its stake to the public through an initial public offering in the fourth quarter of this year in a bid to help fuel its expansion.

"We hope to be able to go public in September or during the fourth quarter of this year. Our target is to raise some US$500 million," said Sandiaga Uno, who with tycoon Edwin Soeryadjaya and other investors control Adaro through private equity firm Saratoga Investama Sedaya.

Saratoga controls around 33 percent of Adaro, which produces around 25 million tons of coal annually.

Sandiaga said Adaro would probably sell between 20 and 30 percent of its stake, with Goldman Sachs, DBS Vickers and UBS AG Securities underwriting the sales.

He said around $200 million of the IPO's proceeds would be used to refinance the company's debts, and the remaining $300 million would be set aside to purchase four coal mines and to construct a power plant.