PT KPC to go ahead with IPO next year<\/p>\n
JAKARTA (JP): Coal mining company PT Kaltim Prima Coal (KPC),
\nbased in East Kalimantan, plans to float its shares on the
\nJakarta Stock Exchange in March, the company said yesterday.<\/p>\n
Company assistant to managing director Hadi S. Prayitno said
\nKPC planned to sell 15 percent of its shares to the public at its
\ninitial public offering (IPO) next year.<\/p>\n
\"We shall continue floating shares in the following years to
\ndivest up to 51 percent of the total shares,\" he said.<\/p>\n
KPC is equally owned by British Petroleum and Rio Tinto, both
\nfrom Britain, and is operating a rich coal mine in Sangatta, East
\nKalimantan.<\/p>\n
Under its contract, KPC is required to divest up to 51 percent
\nof its shares to Indonesian people from the fifth to the tenth
\nyear of operation.<\/p>\n
It should have started the divestment in 1995 but the
\ngovernment allowed it to postpone the divestment.<\/p>\n
Hadi said several conglomerates had offered to buy the
\ncompany's shares but the company preferred to float its shares so
\nthat many Indonesian people would have the opportunity to buy
\nthem.<\/p>\n
Sources said some state-owned companies with support from some
\ntop officials at the Ministry of Mines and Energy also wanted to
\nbuy the company's shares under private placement.<\/p>\n
KPC's contract did not specify the type of divestment.<\/p>\n
\"We are determined to sell the shares to the public so that
\nmany people can own this company. Anyway, it's the government who
\nwill decide on the type of investment,\" Hadi said.<\/p>\n
KPC estimated its production this year at 13.5 million tons,
\nup from 11.4 tons last year. It plans to raise output to 15
\nmillion tons next year.<\/p>\n
The company exports all its output to Japan (32 percent),
\nTaiwan (24 percent), Hong Kong (12 percent), Europe (21 percent),
\nAmerica (7 percent) and other Asian countries, including the
\nPhilippines and Malaysia (4 percent).<\/p>\n
Hadi said the company's assets amounted to US$1 billion this
\nyear up from $600 million in 1992.<\/p>\n
KPC recorded $400 million in sales this year, slightly above
\nlast year's figure.<\/p>\n
He said the company had made a big profit over the past two
\nyears but he refused to reveal the amount.<\/p>\n
According to Hadi, the company has benefited from the rupiah's
\nsharp depreciation against the dollar because all of its output
\nare exports and only 80 percent of its operation costs is in
\ndollars.<\/p>\n
But he said if the monetary crisis continued, the company
\nwould probably be affected in the long-term.<\/p>\n
\"Some exporting countries might demand buying our coal with
\ntheir own currency in the future,\" he said. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-kpc-to-go-ahead-with-ipo-next-year-1447893297",
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