Toba Bara to raise up to Rp 763b from IPO

JAKARTA. The coal mining unit of Toba Sejahtra Group, PT Toba Bara Sejahtra, expects to raise up to Rp 763.12 billion (US$80 million) as the company plans to foal 15 percent of its enlarged capital at the bourse next month.

The company will begin its book building period from June 27 to 29 before its offering period on July 2 to 4 for 317.97 billion shares with a price ranging between Rp 1,850 and Rp 2,400.

The company is expecting to list its shares on the Indonesia Stock Exchange (IDX) on July 10.

“We have discussed with underwriters and we think that 15 percent is suitable for the current condition,” finance director Pandu Sjahrir said. The company was previously planning to divest 25 percent.

The Jakarta Composite Index (JCI), the bourse’s benchmark stock index, opened at 3,680.93, increasing by 0.93 percent from a close at 3,825.33 last Friday. The index closed at 3,866.21 on Monday.

Toba Bara has appointed PT Mandiri Sekuritas, PT Morgan Stanley Asia Indonesia and PT CLSA Indonesia to be underwriters for the offering.

About 15 percent of funds to be raised from the IPO will be used to pay loans amounting to US$35 million from BNP Paribas that will mature in 2014.

The company is also planning to use 50 percent of funds to be raised as capital expenditure for the development of infrastructure and other supporting facilities in its mining concessions run by subsidiary PT Adimitra Baratama Nusantara, PT Indomining and PT Trisensa Mineral Utama.

Pandu said that Toba Bara has allocated Rp 250 billion in capital expenditure this year, including the development of a hauling road from the Trisensa mining area to Indomining and land acquisitions.

The remaining 35 percent of funds to be raised from the IPO will be used to finance acquisitions of coal mining sites.

“We have several acquisitions in the pipeline. However, we cannot reveal it now,” Pandu said.

Toba Bara currently has mining concession areas of 7,087 in East Kalimantan with total estimated resources of 236 million metric tons.

Prior to the IPO, Toba Bara is 82.42 percent owned by PT Toba Sejahtra, a firm operating businesses in natural resources, independent power plants and palm oil, which is 99.98 percent owned by Luhut Pandjaitan — a former Indonesian ambassador to Singapore and former Minister of Industry and Trade.

Other shareholders of Toba Bara are Davit Togar Panjaitan (0.83 percent), PT Bara makmur Abadi (6.88 percent), PT Sinerfi Sukses Utama (5.7 percent) and Roby Budi Prakoso (4.07 percent).

After the IPO, Toba Sejahtra’s shares in Toba Bara will be down to 70.05 percent.

Toba Bara earned Rp 4.36 trillion in revenue last year, which was almost a twofold increase from Rp 2.46 trillion in 2011. The company’s net profit stood at Rp 1.04 trillion last year, a significant increase from Rp 518.76 billion the year before.

The company produced 5.22 million metric tons of coal. The company is aiming to produce 7.6 million metric tons of coal this year, 10.8 million metric tons in 2013 and 12.1 million metric tons in 2014.

President director Justarina Naiborhu said that Toba Bara has a plan to enter the power plant business, which would absorb the company’s low calorie coal. The company’s coal calories range between 4,700 and 5,800 kcal/kilogram gross as received basis (GAR).

“There is a discourse to go there [power plant business], hopefully soon, as Trisensa has low calorie coal, which can be used to steam power plants,” Justarina said. (Raras Cahyafitri/ The Jakarta Post)