Aneka Tambang floats shares on London exchange
Aneka Tambang floats shares on London exchange
JAKARTA (JP): PT Aneka Tambang, a state-owned general mining
company, would float its shares on local and overseas stock
exchanges later this year, the company's finance director said
yesterday.
Ki Agus Umar Tochfa said the company was ready to launch the
initial public offering (IPO) and would list the company's shares
on the Jakarta, Surabaya and London stock exchanges.
"The listing will surely be this year, not next year," he
said.
He said state-run PT Danareksa Securities and Bahana
Securities would become lead underwriters for the company's IPO.
But he declined to mention the total shares to be floated and
total funds to raise from the public.
"We cannot tell you the amount as it is not our right to
disclose that," he said, adding that the ministry of finance as
the company's nominee shareholder would determine it.
He said the company was currently making due diligence with
its underwriters.
But some sources said the company would offer about 35 percent
of its enlarged shares to raise about Rp 1.4 trillion (US$560
million).
Umar said yesterday proceeds from the IPO would be used to
expand the company's mining operations.
"But if the government wants to use some of the proceeds, it
is up to them," he said.
Umar declined to disclose the company's financial performance
or the profit estimate for this year.
Sources said the company expected to book a net profit of Rp
69 billion (US$27.6 million) this year up from Rp 44.29 billion
in 1996.
Umar said sales last year totaled Rp 379.19 billion.
Aneka Tambang, which recorded total assets of Rp 600 billion
in 1996, has three main core mining businesses: nickel, gold and
industrial mineral.
He said the company's nickel operation contributed 71 percent
to the company's profit in 1996, gold 20 percent and industrial
minerals 9 percent.
"The composition is expected to remain similar this year," he
said.
The company's development director D. Aditya Sumanagara said
yesterday the company had received new contracts of work (COW) to
open up gold and nickel mining in the country.
He said the contracts would cover gold mining explorations in
several provinces including Maluku, South Kalimantan, Sumbawa,
East Nusa Tenggara and West Sumatra in cooperation with
Australian companies New Crest, MMC and Western Mining.
He said the contracts would also allow the company to open up
a nickel mine in Gag, Sulawesi in cooperation with Australia's
Broken Hill Proprietary (BHP).
"Initial investment for nickel mining projects will be about
$500 million," he said.
He said the company has two industrial mineral plants: Cilacap
produces 425,000 tons of iron sand and Bintan produces 800,000
tons of bauxite per annum.
"Iron sand from Cilacap is used by domestic cement makers
while bauxite in Bintan is exported to Japan," he said. (aly)