Semen Baturaja IPO set for February 2013

Indonesia state-owned cement producer PT Semen Baturaja is planning an Initial Public Offering (IPO) for next February to raise funds to construct a new cement plant.

The company aims to raise up to IDR1trn (US$103.79m) by selling up to 35 per cent of its enlarged capital, Reuters cited Semen Baturaja director, Pamudji Raharjo, as saying.

The funds raised will be used for the construction of a new 1.5Mta cement factory in Pabrik Baturaja II. The project is slated for completion in 2015.

Bahana Securities, Danareksa Sekuritas and Mandiri Sekuritas have been named underwrites for the IPO which is still awaiting government approval. Baturaja's IPO has been delayed since 2011 after national flag carrier Garuda Indonesia saw its shares fall from their IPO price in February last year.

PT Semen Baturaja has three cement plants located in South Sumatra with a combined clinker capacity of 1.2Mta and a cement capacity of 1.25Mta.