Kapuas Prima to launch IPO next month

Petromindo|Boim

Mining company PT Kapuas Prima Coal plans to launch an initial public offering (IPO) on October 16 of this year to raise funds to help finance exploration activities and construction of mining infrastructure.

President Director of Kapuas Prima, Harjanto Widjaja said on Tuesday the company hopes to raise between Rp 66 billion and Rp 93.5 billion in proceeds from the IPO to be used to help finance working capital and capital expenditure.

The company plans to issue 550 million shares at a price of between Rp 120-170 each. Another 500 million shares will be issued through mandatory convertible bonds, making the total shares to be issued to reach 1.05 billion, or around 20.79 percent of paid up and issued capital, said Senior Vice President of securities firm PT Erdhika Elit Sekuritas, the lead underwriter of the IPO.

Kapua Prima operates mines in Central Kalimantan producing mineral commodities such as lead, zinc, and iron ores. The company owns a 30 percent interest in PT Kapuas Prima Citra, which operates a lead smelter with capacity of 40,000 tons of lead concentrates, and produces 20,000 tons of lead bullion per year. (*)