Tuesday, 19 November 2019 | 07:22 WIB

SEAM Mulls Preparing IPO for Integrated Energy Subsidiary

SEAM Mulls Preparing IPO for Integrated Energy Subsidiary (special)

JAKARTA, NETRALNEWS.COM - Integrated infrastructure and energy business group PT Sumber Energi Alam Mineral (SEAM) plans to conduct an initial public offering (IPO) for its integrated energy subsidiary, PT Sumber Energi Mahesa Intibara (SEMI).

Asep Sulaeman Subanda, President Director of Sumber Energi Alam Mineral, said the company is focusing on long-term business direction by restructuring the subsidiary into two sectors, namely the energy and infrastructure sectors.

"In the energy sector, SEAM Group has formed a new subsidiary, PT Sumber Energi Mahesa Intibara. The subsidiary is expected to conduct initial public offering in 2020," Asep said.

He explained that SEAM is a holding company engaged in four business pillars, namely infrastructure, animal husbandry, property and integrated energy.

"SEAM Group has an integrated energy business in Central Kalimantan and East Kalimantan, which is still in the development stage," Asep said.

According to him, the company's integrated energy business consists of coal mining, power plant, mining roads, property, jetties and sea ports. Asep said the coal mining concession area in Katingan, Central Kalimantan, reaches 8,850 hectares with total reserves of 151.38 million tons.

Furthermore, Asep said the supporting infrastructure and SEAM Group's animal husbandry business was in Subang, West Java. "To finance business throughout 2018, SEAM issued Short-Term Investment Securities (SBI-JP) in collaboration with Ascort Asia as a marketing agent," said Asep.

Previously, SEAM issued SBI-JP worth IDR 1 trillion by cooperating with state-owned banking company PT Bank Rakyat Indonesia (Persero) Tbk (IDX:BBRI) as a monitoring agent, guarantee holder and payment agent. The SBI-JP funds have been used for expansion and investment activities, such as road construction, hauling, heavy equipment purchases, opening up mining land, as well as mining and port acquisitions.

"We hope that the issuance of investment securities with short-term tenors will accelerate the completion of several company projects. We also expect assistance from Ascort in preparation for the IPO," he said.

Asep added that SEAM's business strategy for the long term seeks to carry out strategic corporate actions that can provide added value to shareholders through organic and non-organic growth.

"The medium-term strategy, we will implement an integrated business plan to produce optimal productivity," he added.