RPT-DEALTALK-Partners get huge chunk of Indonesia's Adaro IPO

(Repeats July 9 story with no changes to text)

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By Harry Suhartono and Tony Munroe

JAKARTA/HONG KONG, July 9 (Reuters) - Shares in PT Adaro Energy's $1.3 billion IPO, Indonesia's largest offering, were mostly distributed to connected parties, disappointing some domestic investors and global funds.

Several big foreign investors active in Asia have grumbled that they were shut out of the country's biggest-ever initial public offering despite heavy overseas interest in what is seen as an attractively priced deal.

The deal underscores the opacity that sometimes plagues Southeast Asia's biggest country.

No international prospectus was issued, which was surprising to some observers given the size of the IPO, but not unheard of, people familiar with the matter said.

Adaro said in a document that 69.15 percent of the 11.14 billion shares offered will be allocated to five investors who already had stakes in PT Adaro Indonesia, a coal miner that Adaro Energy plans to acquire with the proceeds from the IPO. They are Farallon Capital, Kerry Coal, the Government of Singapore Investment Corp (GIC), Citigroup (C.N), and Goldman Sachs (GS.N).

Just 22.82 percent of the IPO shares are being allocated to domestic institutions, asset managers, insurers, pension funds, and individuals. Schroders Investment Management Indonesia will become the biggest unconnected institutional buyer of the IPO with $12 million worth of shares.

Remaining shares went to foreign investors including Dubai Investment Group, a company document said.

"International investors should have been consulted on this, especially given the size," said a senior fund manager in June in Hong Kong whose global firm bought shares in the recent $300 million IPO by rival Indonesian coal producer PT Indika Energy Tbk (INDY.JK).

Foreign fund managers who said they were unable to get Adaro shares declined to be identified for fear of being shut out of future deals.

A limited free float increases the scarcity value of Adaro shares, which are set to list on the Jakarta bourse on July 16. Indonesia's market regulator approved the IPO on Friday.

"I don't think we can get a meaningful amount so I don't even bother," another senior executive at a global investment company told Reuters in June. "To me, it is not a proper IPO."

Amica Darmawan, an analyst at First State Investment in Indonesia, told Reuters that her Australia-based firm was allotted IPO shares but not as many as it had sought in order to keep a proportional weighting of the stock in its funds.

"This could be a problem because we won't be able to match the performance of our funds relative to the index if Adaro shoots up," she told Reuters this week.