Indonesia Berau to sell 18 pct stake via August IPO

JAKARTA, July 15 (Reuters) - Indonesia's PT Berau Coal Energy plans to sell an 18 percent stake via an initial public offering in August and use most of the proceeds for capital expenditure, it said on Thursday.

Berau, Indonesia's fifth-largest coal miner by output, did not reveal the expected proceeds from the share sale.

Indonesia's Recapital Advisor, which has a controlling stake in Berau, said in late May that the IPO was expected to raise about $300 million. [ID:nJAK237723]

Berau, which posted sales of 8.3 trillion rupiah ($917.8 million) last year and a net profit of 854 billion rupiah in the period, appointed Danatama Makmur and Recapital Securities to underwrite the share offer, it said in a newspaper announcement.

The share prices of newly-listed firms on the Indonesia stock exchange made strong gains from their IPO prices when they started trading this month. [ID:nSGE66806E] [ID:nJAK18770]

Thermal coal miner, PT Harum Energy, however, has indefinitely delayed a $400 million IPO planned for August due to market conditions, two sources involved in the deal told Reuters earlier this month. [ID:nJAK173471]

Global markets have been volatile in recent weeks on growing concerns about the fallout from a euro zone debt crisis, raising worries about the outlook for the global economy and increasing investor caution towards risky assets. ($1=9,043 Rupiah) (Reporting by Telly Nathalia; Editing by Dhara Ranasinghe)