Indonesian Adaro's $1.3 bln IPO gets OK for next week

By Harry Suhartono

JAKARTA, July 5 (Reuters) - The $1.3 billion initial public offering of PT Adaro Energy Tbk, Indonesia's second-biggest coal miner by output, will go ahead this week after obtaining approval from the regulator, the lead underwriter said late on Friday.

The offering, Indonesia's biggest, was delayed as the capital markets regulator Bapepam requested clarifications.

Some critics have complained about the proposed allocation of shares and have expressed concerns about a legal dispute over Adaro's ownership.

"We have obtained the effective statement from Bapepam. The offering will be on July 8-10 and listing will take place on July 16," said Vicky Ganda Saputra, vice president of investment banking at Danatama Makmur, the lead manager for the deal.

Adaro's IPO had originally been scheduled to take place last month, with the shares due to list on July 2.

Adaro is offering 34.8 percent of its enlarged share capital, at 1,100 rupiah a share, in order to finance expansion and repay debt, reducing its interest costs.

The offering price would value the company at around 35.3 trillion rupiah ($3.83 billion), or 17.3 times its 2008 earnings, Danatama said.

That would make Adaro the third-biggest listed coal miner by market value after PT Bumi Resources BUMI.JK, and PT Indo Tambangraya Megah ITMG.JK.