Trans Power Marine Ready for IPO

PT Trans Power Marine (TPM), a company provides bulk cargo transportation services mainly to the coal industry, has planned to release some of its shares to public through Initial Public Offering (IPO) at a price range of Rp 220 - 250 per share.

Trans Power Marine will offer 395 million shares or around 15% of the Company’s issued and paid-up capital. The Company expects to obtain up to Rp 98.75 billion from the offering.

TPM President Director Daniel Wardjojo said the proceeds of IPO will be used to finance 30% of the Company’s capital expenditure this year, which is set at US$ 30 – 40 million. While the rest 70% will come from bank loans.

The Company will use the capex to purchase 4-7 sets of tug and barge as well as one floating crane to support its operational activities.

“The shares offered to public will attract the investors,” Daniel said in Jakarta on Monday (28/1). It is due to the Company’s performance that is expected to improve in the future along with the increase in coal demand for use in domestic steam power plants.

The Company expects the demand of coal in 2015 will rise around 124 million tons for domestic, 361 million tons for export, and 485 million tons for production. The rise in production volume and domestic coal demand will increase the demands for tugs and barges significantly, he added.

TPM currently operates 30 sets of tugs and barges, which are mostly owned. Most of Trans Power Marine revenue in 2012 came from coal freight business.

Some of Company’s clients are among others PT Jorong Barutama Greston and PT Adaro Indonesia.