JAKARTA, June 11 Indonesian thermal coal miner
PT Toba Bara Sejahtera said on Monday it has cut the size of a
planned June initial public offering to about $75 million, from
previous expectations of up to $400 million, due to weak
Toba Bara, controlled by former army general Luhut
Panjaitan, plans to sell a 15 percent stake in the offering and
has set a price range for bookbuilding at between 1,850 rupiah
to 2,400 rupiah per share, one of its underwriters said.
"We have to cut the size because the market is volatile at
the moment," said Pandu Sjahrir, a Toba Bara director.
The price range values the company at up to 5.06 trillion
rupiah ($539.16 million), compared to earlier expectations for a
valuation of about $2 billion, as Europe's debt crisis has led
equity investors to demand a discount for offerings.
Many firms in Indonesia and globally have delayed plans to
raise capital or canceled deals this year.
Toba Bara's IPO price range values the company at a PE ratio
of 5 to 6 times forward earnings, below 7 times for miner Harum
Energy and 24.9 times for Bayan Resources,
and far below owner Panjaitan's hopes for getting at least 10 to
Toba Bara has appointed Morgan Stanley, CLSA and
local brokerage Mandiri Sekuritas as underwriters for the IPO.
($1 = 9,385 rupiah)
(Reporting by Fathiya Dahrul; Editing by Neil Chatterjee)