Alfa Energi Investama, an Indonesia-based coal miner, will offer 300 million shares (equivalent to 23 percent of the company's enlarged shares) to the public in its initial public offering (IPO) on the Indonesia Stock Exchange at a price range of IDR 400 - 500 a piece. Lautandhana Securindo has been appointed as lead underwriter.
Wientoro Prasetyo, President Director of Alfa Energi Investama, expects to collect between IDR 120 - 150 billion through this corporate move. About 30.5 percent of these funds will be used for debt settlements, while 52.8 percent will be allocated for working capital. The remainder will be used to improve existing infrastructure around its mining site in Samarinda, East Kalimantan (including expanding the capacity of one of its two harbors).
Alfa Energi Investama targets to produce 530,000 metric tons of coal in 2017. Based on its experience the company sells approximately 95 percent of its production. Most of its coal - about 80 percent - is exported abroad, primarily to China, India and South Korea. The remaining 20 percent is sold on the domestic market.
Over full-year 2016 the miner posted IDR 98.7 billion (approx. USD $7.4 million) worth of sales, up 78.8 percent (y/y) from sales in the previous year. Meanwhile, its gross profit rose from IDR 2.17 billion in 2015 to IDR 28.59 billion in 2016. Net profit was IDR 5.51 billion in 2016 (from a net loss of 20.77 billion in the preceding year).
It is a gutsy decision of Alfa Energi Investama to conduct an IPO amid the uncertain global economic outlook. Although the coal price surged in the second half of 2016 (mainly due to supply cuts in China), the price has been easing so far in 2017 and it remains unclear where it will go in the remainder of the year (this is highly dependent on Chinese policies).
The offering period is scheduled for 30 May - 1 June 2017, while listing on the IDX is scheduled for 7 June 2017.
In full-year 2017 the Indonesia Stock Exchange targets to see 30 companies listing on the local bourse. So far, eight companies have conducted an IPO in Indonesia this year.
Last Update: 26 May 2017
IPOs on the Indonesia Stock Exchange up to 16 May 2017
|Company||P: 26 May 2017||P: 25 May 2017||Gain/Loss||P/E ttm||Yield %||Gain/Loss YTD|
|Sanurhasta Mitra Tbk.MINA||820||830||-1.20%||N/A||0.00%||241.67%|
|Forza Land Indonesia Tbk.FORZ||570||555||2.70%||N/A||0.00%||38.35%|
|Industri dan Perdagangan Bintraco Dharma Tbk.CARS||1,710||1,710||0.00%||N/A||0.00%||-1.72%|
|Nusantara Pelabuhan Handal Tbk.PORT||520||510||1.96%||N/A||0.00%||-9.57%|
|Cahayasakti Investindo Sukses Tbk.CSIS||715||700||2.14%||N/A||0.00%||27.68%|
|Pelayaran Tamarin Samudra Tbk.TAMU||740||730||1.37%||N/A||0.00%||193.65%|
|Terregra Asia Energy Tbk.TGRA||450||410||9.76%||N/A||0.00%||32.35%|
Green colour indicates upward movement
Red colour indicates downward movement
P = price; E = earnings; D = dividend; Yield = D/P
"N/A" indicates P/E < 0 (negative earnings)
"-" indicates E,D,P or YTD is not available