Adaro poised to be Indonesia's largest IPO (Reuters)

This is the biggest IPO in Indonesia so far. Amazing deveopment for an emerging country that has gone through various natural disasters, financial and political turmoils.

Adaro poised to be Indonesia's largest IPO (Reuters)

By John Aglionby in Jakarta

Thursday May 15 2008 10:35

Adaro Energy, the holding company for Indonesia's second-largest coal miner, on Thursday increased its planned public offering to Rp12,000bn ($1.3bn), which stands to make it the largest IPO in the country's history.

Adaro is 36 per cent owned by a group of investors including Goldman Sachs (NYSE:GS) , Citigroup (NYSE:C) , Farallon Capital, the Government of Singapore Investment Corporation and the Kuok Group. Teddy Rachmat, an Indonesian businessman, and Saratoga Capital, each control 32 per cent.

Indonesia is the world's largest exporter of thermal coal, which is widely used in the power sector. Adaro plans to use 91.2 per cent of the IPO proceeds to raise its stakes in the Agalia business group, a holding company for mining interests, and another affiliate, and to repay debts.