September 25, 2002 1:48:14 PM
Bukit Asam To Offer 35% Stock

PT Tambang Batubara Bukit Asam (TBBA) will offer 35% stock through Initial Public offering (IPO) in the next November 2002, stated the President Director of the State-Owned Mining Company Ismet Harmaini, as released by Dow Jones.

The portion of TBBA stock offered is bigger than the previous news that indicates about 20%.

Ismet adds that TBBA will use small portion of the fund gained from the IPO to increase the production capacity of Ombilin mine, West Sumatera.

Half of the fund will be paid to the government, to reduce the 2002 state budget deficit, which is targeted to be 2.5% of the GDP.

The company has yet to decide the nominal price and offering price for the IPO.

Last August, TBBA had appointed PT Danareksa Sekuritas as the lead underwriter and BNP Paribas as the co underwriter.

The appointment of BNP as the co uderwriter is because it is said to have a knowledge in mining sector, which is the core business of Bukit Asam. Beside that, BNP has a surplus in stock distribution that hoped to lure foreign investor’s interest.
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