0 Fresh From IDX Debut, Shipper BBR Has Big Plans

Pelayaran Nasional Bina Buana Raya, a shipping company that made its trading debut on the Indonesia Stock Exchange on Wednesday, is investing as much as $46 million in new vessels to expand its business. Loa Siong Bun, president director of the company, on Wednesday said that the company is buying two anchor handling tug supply vessels this year, which will arrive by 2014. Sean Latip, a director at the company known as BBR, said that each of the 8,000-horsepower vessels will cost $20 million to $23 million to purchase. 

“So the two AHTS vessels will cost about $40 million to $46 million,” Latip said. He added that financing for the purchase will be helped by some of the proceeds of its initial public offering, where the company raised Rp 138 billion ($14.2 million) by selling a 24 percent stake. Other than the IPO proceeds, the company may also use bank loans for financing as well as internal funds, Latip said. Some of the proceeds will also be used to refinance a maturing bond. 

Latip expects the additional ATHS vessels will help the company’s expansion in the shipping business to access the oil and gas industry in Indonesia. “The offshore oil and gas sector in Indonesia is big. Plenty of opportunities there, and we want to tap into that,” he said on Wednesday. AHTS vessels are used to tow oil rigs to their locations and anchor them. Loa said that BBR already has three AHTS vessels — two with 8,000 horsepower and one with 5,400 horsepower. 

The company also has 35 barges and tugboats. In its trading debut on Wednesday, the company’s shares closed unchanged at its listing price, Rp 230. The shares opened 22 percent higher in the morning before settling to its closing price in the afternoon. The main index lost 0.8 percent. BBR is the first company to list on the Indonesian Stock Exchange (IDX) this year after its December IPO. The exchange is targeting 30 IPOs this year. According to Hoesen, a director at the IDX, about eight companies may launch their IPOs early in the year. These companies started the IPO process with the IDX last year, he said. In 2012, there are 23 new listings on the IDX.

source : the jakarta globe