Bumi eyes $1bn non-coal IPO

Bumi eyes $1bn non-coal IPO. (AFP)

PT Bumi Resources, Indonesia's biggest coal producer, wants to list its non-coal mining assets that it values at $1.9 billion (Dh6.97bn), in a $1bn initial public offering later this year, said sources.

Credit Suisse, which has advised Bumi on deals in the past, and JP Morgan, were among the banks approached to advise on the Jakarta listing, two sources said.

Investors have snapped up assets in Southeast Asia's biggest economy over the past year, attracted by strong growth, political stability, and prospects for an investment grade credit rating.

The benchmark stock index hit an all-time high this month, and the share rally has encouraged a flurry of deals including placements for cement giant PT Semen Gresik and mobile phone operator XL Axiata. Bumi, which has a stock market value of $5.4bn, is the prize asset of the Bakrie group, a conglomerate controlled by the family of tycoon and politician Aburizal Bakrie.

The Bakrie group has property, telecommunications, energy, and plantations interests and has raised more than $4bn in recent months from loans, bonds, and share issues, with plans to raise a further $550 million from bond sales.

Bumi has already set up a separate unit, PT Bumi Resources Mineral (BRM), to manage its gold, copper, zinc, lead and iron ore interests in Indonesia and Africa.

Now Bumi is considering listing BRM in Jakarta in an initial public offering to raise more than $1bn, said three people familiar with the plans. However, the sources declined to be quoted by name.

 

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