Bukit Asam sets IPO price at Rp 575

Bukit Asam sets IPO price at Rp 575

JAKARTA: State-owned coal miner PT Tambang Batubara Bukit Asam said Wednesday it has set the price of the 346.5 million shares in its upcoming initial public offering at Rp 575 (6.3 US cents) each.

The company will offer the shares to the public from Thursday to Monday.

The offering includes 315 million of the government's shares in the company and 31.5 million new shares.

Bukit Asam will give one warrant for every two shares bought. The warrant holders will be entitled to buy the company's shares at Rp 675 each from June 30, 2003 to Dec. 22, 2005.

Proceeds from the sale of the government's stake in the company will go to the state's coffers to help finance the state budget. The remainder will be used as working capital, Bukit Asam said in a statement.

The IPO shares represent 15 percent of the company's enlarged share capital. Bukit Asam had planned to offer 35 percent of its shares in the IPO, but reduced the amount following the Oct. 12 bombings on Bali island, which have hurt market sentiment. -- Dow Jones