RPT-UPDATE 2-Indonesia Bayan's $529 mln IPO approved - regulator

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By Harry Suhartono

JAKARTA Aug 5 (Reuters) - Indonesian coal miner PT Bayan Resources Tbk has received regulatory approval to sell $529 million worth of shares in an initial public offering, the country's capital market watchdog said on Tuesday.

Bayan's listing closely follows Indonesia's biggest IPO, coal miner Adaro Energy (ADRO.JK) as coal firms seize the opportunity to list during a global commodity boom at a time when many companies are shelving plans due to turbulent markets.

Fuad Rahmany, the chairman of Bapepam, confirmed an earlier Reuters report in which a source close to the deal said that the coal mining firm had obtained approval for its IPO.

Bayan is offering new and existing shares at 5,800 rupiah ($0.64) a share, close to the bottom end of the 5,600-7,700 rupiah indicated price range, and valuing Bayan at around $2.1 billion. Underwriter Trimegah Securities had said the pricing valued Bayan at about six times its 2009 earnings.

Bayan said it would offer its shares for sale between August 6-8 and list on the Indonesia Stock Exchange on August 12.

Bayan's IPO comes close on the heels of rival PT Adaro Energy's IPO which raised $1.3 billion.

Shares in Adaro, the country's second-biggest coal producer, were priced at about seven times 2009 earnings in the IPO, but the stock jumped nearly 60 percent on the first day of trading, and currently trade about 45 percent above the IPO price.

Three other listed Indonesian coal miners, PT Bumi Resources Tbk (BUMI.JK), PT Indo Tambangraya Megah Tbk (ITMG.JK), and PT Tambang Batubara Bukit Asam Tbk (PTBA.JK), are valued at between 8.2 to 9.8 times 2009 earnings.

A total of 833 million Bayan shares, including 333 million new shares and 500 million from existing shareholders, are being offered for sale. The company's free float would be about 25 percent of the enlarged share capital.

Three individual shareholders, Bayan's founder Low Tuck Kwong, Jenny Quantero, and Engki Wibowo, will sell a total of 500 million shares, the company said.

The underwriter has the option to sell an additional 83 million shares after the end of the offer period, and another 137.5 million shares within 30 days after the listing, increasing the free float to 31.6 percent.

Low Tuck Kwong controls 75 percent of Bayan, while the husband-and-wife team of Wibowo and Quantero, both directors at Bayan, hold the rest.

Proceeds from the sale of the new shares will be used to help finance expansion, while proceeds from the sale of existing shares will go to the selling shareholders.

Indonesia is the world's largest thermal coal exporter and miners in the Southeast Asian country have gained from strong demand from China and India and record high coal prices. ($1=9,082 rupiah) (Editing by Sara Webb & Louise Heavens)