PT Timah to float shares in London in mid-October
PT Timah to float shares in London in mid-October
JAKARTA (JP): The state-owned tin mining company PT Timah
announced yesterday that it will float shares on the London,
Jakarta and Surabaya stock exchanges in mid-October.
"We estimate that the stock markets at that time will be in
good condition," the company's president, Erry Riyana
Hardjapamekas, told reporters at a press conference here.
The London Stock Exchange (LSE) has been chosen because of its
size, even though there is a London Metal Exchange, he said.
Erry declined to say how many shares would be listed, but he
said the company would follow the pattern of Indosat. Indonesia's
international telecommunications operator Indosat listed 25
percent of its shares on the New York Stock Exchange last year
and a further 10 percent on the Jakarta and Surabaya capital
markets.
Timah's director of finance, Maryat Nirwana, said that the
company will sell 35 percent of its shares. He said 10 percent of
the shares would be new stocks, sold on local markets, while the
other 25 percent would be government shares and would be sold on
the LSE.
Maryat said that the proceeds from the sale of the new shares
will be used for capital expenditure, as follows: 45 percent for
the up-grading of the firm's dredgers, 32 percent for production
facilities, 17 percent for new exploration, 4 percent for
improvement of Timah's smelters and 2 percent for information
equipment.
He said that the nominal price of the company's shares is Rp
500 each.
Erry declined to answer questions about the use of the
proceeds from the sale of the government's shares on the LSE.
"It's not within my authority to answer. Ask the government about
it," he said.
He said that the government has appointed Barclays Zoette
Wedd of Britain as the global coordinator for the initial public
offering on the international market.
PT Niaga Securities, an affiliate of publicly-listed Bank
Niaga, and PT Pentasena Securities, a company controlled by
businesswoman Siti Hediati, will act as underwriters for the
share issue on the domestic market.
Erry said that the company's net profit reached Rp 43 billion
in the first six months of this year, while its net profit last
year was Rp 120 billion.
Patia Panjaitan, the company's operations director, said that
there were two tin mining companies in Indonesia, Timah and PT
Koba Tin. The latter is 25 percent owned by Timah and 75 percent
by Radisson Gold Fields Corp. of Australia.
Timah has 490,000 tons of proven tin reserves in its mining
concessions, which total 786,657 hectares, in South Sumatra, he
added.(04)