Adaro Energy Raises $1.32 Billion From Share Sale in Indonesia

June 9 (Bloomberg) -- PT Adaro Energy, the holding company of Indonesia's second-largest coal producer, raised 12.25 trillion rupiah ($1.32 billion) in the country's biggest domestic initial share sale since 1995 to help fund acquisitions and pay debt.

The Jakarta-based company sold 11.14 billion new shares at 1,100 rupiah apiece, said Vicky Ganda Saputra, a director at PT Danatama Makmur, which is helping to arrange the sale. Investors sought more than six times the amount of shares offered, he said.

``We were surprised by the investors' enthusiasm in buying Adaro shares,'' Saputra said in a phone interview in Jakarta. About 81.3 percent of those buying the shares were foreign investors, he said.

Adaro joins companies including PT Indika Energy, which owns 46 percent of Indonesia's third-biggest coal producer, in tapping the stock market for funds after prices of the fuel surged. Coal prices at Australia's Newcastle port, a benchmark for Asia, rose to a record $158.53 a metric ton in the week ended June 6, according to the globalCOAL NEWC Index.

The measure that tracks Jakarta's 15 mining stocks has more than doubled in the past year while the key Jakarta Composite index rose 15 percent. Shares of PT Indo Tambangraya Megah, a unit of Thailand's Banpu Pcl, have risen 72 percent since their Jakarta trading debut in December as record crude oil prices pulled coal prices higher.

Bumi Rises

Adaro plans to spend 1.63 trillion rupiah to acquire Agalia Energy Investments Pte, which holds stakes in Adaro Energy units. About $100 million of the IPO proceeds will be used to repay debt while 370 billion rupiah will be spent to strengthen the working capital of PT Sapta Indra Sejati, its mining contractor unit.

Shares of PT Bumi Resources, Indonesia's largest coal producer, have more than quadrupled in the past 12 months and traded at 7,900 rupiah on June 6, more than 12 times the estimated earnings for 2009, according to Bloomberg calculations.

Indika priced its shares at the top of a proposed range as investors sought 17 times the amount of stock on offer, the company said in an e-mailed statement on May 26.

Adaro's initial public offering is the largest since November 1995, when PT Telekomunikasi Indonesia raised $1.6 billion from an IPO in Indonesia and the U.S. in which $1.05 billion of the proceeds were from domestic sources.

To contact the reporter on this story: Wahyudi Soeriaatmadja in Jakarta at wahyudi@bloomberg.net.