CLSA Bumi Mineral Resources (BMR) IPO

BMR will be postponed to 2011 from inital schedule of 4Q10. The non-coal subsidiary of Bumi Resources was initially planning to sell 16.22% shares in the IPO this coming Oct using 1Q10 financial statements, aiming to raise US$400m out of the BMR's current equity value of US$900m. BMR does not have any operating asset at the moment, virtually in exploration stage plus dividend streams from Newmont Nusa Tenggara. Comment: the lingering issue that causes this delay is the lack of Bapepam regulation that allows IPO for a company with no operating or productive asset such as BMR. Hence, there needs to be a new regulation to accomodate this listing. Otherwise, BMR could opt for its second option ie to list in Hong Kong, as revealed by its parent Bumi.