Indo Tambangraya Megah Officially Listed on the Indonesia Stock Exchange Offers 225,985,000 shares with price Rp 14,000 per share
Jakarta, December 18, 2007 — Today PT Indo Tambangraya Megah Tbk (“ITM”) is officially listed on the Indonesia Stock Exchange (IDX) with stock symbol ITMG.
”After the IPO process, PT Indo Tambangraya Megah Tbk is confident to be one of the top listed companies in the mining and energy sector” explained Somyot Ruchirawat, President Director of PT Indo Tambangraya Megah Tbk at today’s inaugural listing moment of the company. Together with Board of Commissioners, Directors of ITM, and the management of IDX, Ruchirawat watched the ITMG symbol shown officially at the stock floor.
“The IPO process of ITM has been conducted successfully, as expected by the commissioners, management and other supporting professionals working on this IPO,” said Somyot Ruchirawat. Demand for ITM shares has been very strong, both from local and international investors, since the book building period up until the last day of the offering period.
The Board of Commissioners and Directors of PT Indo Tambangraya Megah Tbk believe that with its key management and international standards in operation, including Corporate Governance policy, Quality, Safety and Environment (QSE) policy and Corporate Social Responsibility (CSR) policy, ITM has strong foundation for sustainable growth and will create good values for shareholders. “We would like to express our gratitude for the enthusiasm and trust from both local and foreign investors who invest in ITM,” remarked ITM President Commissioner Sutoyo Sutedjo. He added that the IPO is another milestone boosting ITM’s competency in sustainable growth.
The increase in oil prices in recent years has also contributed substantially to a rise in operational costs and together with slower productivity gains, has put upward pressure on coal prices. The sustained demand for thermal coal in the Asia-Pacific market and recent disruption in coal shipments due to weather problems in Australia have pushed spot prices of coal to historical high.
Offering Highlights
The offering was 100% new shares and was comprised of an International (65%) and Domestic Indonesian (35%) tranche. The institutional investor book building was closed on November 30, 2007 and the public retail offering was conducted December 11 and December 13, 2007.
With the offering of 225,985,000 new shares at the final offering price of Rp 14,000 per share, ITM expects to raise US$337.4 million from the IPO. ITM expects to use the proceeds from IPO, after deduction of fees and commissions and certain expenses incurred in connection with IPO as follows:
– US$65 – 70 million for the Bontang Coal Terminal upgrade and expansion;
– US$20 – 25 million for the construction and commissioning by Indominco of the Bontang Power Plant;
– US$20 million to develop the Indominco East Block; and
– US$40 – 50 million to develop the Bharinto contract area.
– The remaining fund will be utilized for the repayment of shareholder indebtedness and business expansion, including the acquisition of coal and power plants in Indonesia, if suitable opportunities arise.
About PT Indo Tambangraya Megah Tbk
ITM is the third largest coal producer in Indonesia, which owns majority shares of its five subsidiaries: PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Bharinto Ekatama, PT Jorong Barutama Greston, and PT Kitadin, with total production of 19.6 million tons in 2006. ITM has diversified mining operations from strategic locations in East and South Kalimantan with dedicated port/barge and loading facilities. Net profit for the year ended on December 31, 2006 was US$24.9 million (excluding Jorong, which is acquired in August 2007), and for the six months period ended on June 30, 2007 was US$22.7 million (excluding Jorong).
