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Published on November 23, 2007

ITM president director Somyot Ruchirawat said here on Tuesday that the company planned to sell almost 226 million new shares in the initial public offering (IPO) at a price of between Rp11,000 (Bt36.7) and Rp 15,000 per share.

The company expects the IPO will generate between US$267.2 million (Bt9 billion) to $364 million in proceeds. The shares, which will be offered to the public from December 10 to 12, will be listed on the Jakarta Stock Exchange (JSX) on December 17.

PT UBS Securities Indonesia will act as the lead underwriter.

"Seventy per cent of the proceeds will be used for expansion, including future acquisition of coal and power projects, while the remaining 30 per cent will be used for general corporate purposes, including debt repayments," Ruchirawat said.

He said ITM planned to spend between $40 million and $50 million on upgrading one of its ports in Bontang, East Kalimantan, and also to increase its stockpile to 650,000 tonnes from 350,000 tonnes.

He added the company also planned to spend around $95 million to expand its mining sites in its two subsidiaries, PT Indominco Mandiri and Bharinto Ekatama.

Currently, the company has five subsidiaries - PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Bharinto Ekatama, PT Kitadin and PT Jorong Barutama Greston - which are all involved in coal-mining operations.

ITM, the country's third-largest coal producer, has estimated coal reserves of about 1.5 billion tonnes.

In the first six months of 2007, the company posted $22.7 million in net profit, almost equivalent to the net profit for 2006 of $24.9

million.

Ika Krismantari

The Jakarta Post/ANN

JAKARTA