Indonesian coal miner Harum Energy to sell 26.5 pct in IPO

JAKARTA Aug 31 (Reuters) - Indonesian coal-miner PT Harum Energy said on Tuesday it plans to sell up to 715 million new and existing shares, equivalent to 26.5 percent of its enlarged share capital, in an initial public offering scheduled for October.

The company did not say in its statement how much it planned to raise in the IPO, but a stock exchange official had previously said Harum Energy aimed to raise as much as $400 million.

The firm said in a statement it will use $80 million from the IPO to develop its coal mines in Kalimantan this year, including the development of a hauling road, and to buy additional crushers, 10 tug boats and 10 barges. The rest of the funds will be used for capital expenditure over the next two years and to repay part of its debt.

Harum Energy, which is part of Tanito Coal Group, had previously put its IPO plan on hold, sources told Reuters in July. [ID:nJAK173471]

But as the Jakarta stock market climbed to new all-time highs and attracted foreign investors, Harum revived its IPO plan, a source with direct knowledge with the plan told Reuters on Tuesday.

The company said in a statement published in Kontan newspaper that it plans to sell 650 million new and existing shares, with an over-allotment option to sell an additional 65 million shares.

Harum Energy reported first-quarter net profit of 134.1 billion rupiah ($14.88 million), and total assets of 2.2 trillion rupiah as of March 31.

It reported full-year 2009 net profit of 767.5 billion rupiah, compared with 120.4 billion rupiah in 2008.

Revenue in 2009 was 4.5 trillion rupiah, up 76 percent from 2008, based on coal sales of 6 million tonnes and production of 4.5 million tonnes.

Harum Energy has already appointed Goldman Sachs (GS.N) and Deutsche Bank (DBKGn.DE) as international underwriters for the IPO, and PT Mandiri Sekuritas and PT Ciptadana Securities as local underwriters. ($1=9012 Rupiah) (Reporting by Janeman Latul, Editing by Sara Webb)