JAKARTA. PT Royaltama Mulia Kontraktorindo Tbk (RMKO) plans to integrate its mining and logistics services in South Sumatra after raising funds through its initial public offering (IPO).

Vincent Saputra, President Director of RMKO, states that RMKO is projected to complement the logistics services in the upstreaming process. It is then expected to support the downstreaming business activities of its affiliate, PT RMK Energy Tbk (RMKE), which is currently focusing on coal logistics services.

“The coal potential in South Sumatra is still very robust, once the upstream and downstream infrastructures are well-connected,” Saputra added in the official statement yesterday (11/7).

In addition, the management of RMKO is targeting to be able to take on non-group projects outside South Sumatra. The company also offers an option to establish non-coal commodity transportation services in the future.

For the record, the book building of RMKO’s shares will last until this Thursday (10/7). At the end of this IPO, the company is predicted to collect fresh funds of up to IDR 112.5 billion.

The entire proceeds of IPO will be allocated to the company’s working capital, including fuel purchase, heavy equipment operational activities, spare part purchase, and heavy equipment maintenance. (KR/ZH)