Indonesian nickel miner PT Trimegah Bangun Persada has raised 10 trillion rupiah ($659 million) in its initial public offering (IPO), Bloomberg reported.
The unit of Harita Group is said to have reportedly sold 8 billion shares at 1,250 rupiah apiece or at the top end of the 1,220-1,250 rupiah range.
“We are finalising our book-building process, and we hope the price will be at the top range,” Roy Arfandy, president director of Trimegah Bangun Persada told DealStreetAsia.
According to the prospectus published on IDX, the company is offering over 12 billion shares, representing 18% of the total shares. The company is expected to get listed on the IDX on April 12, 2023.
Harita Jayaraya is the majority shareholder of Trimegah Bangun Persada with ownership of 99%. After the IPO, Harita’s ownership will be reduced to 81.18%.
The company will use the IPO proceeds to meet working capital needs (38%), inject capital into 7 subsidiaries and 5 associate entities (32.27%), and for retiring debt.
In terms of financial performance, Trimegah Bangun Persada booked a net profit of 3.6 trillion rupiah from Jan-Sep 2022, compared to 900.23 billion rupiah in the same period of 2021. Its revenue grew by 14.8% from 6.4 trillion rupiah in Jan-Sep 2021 to 7.35 trillion rupiah in the same period of 2021.
The biggest IPO
With the bright prospects of the nickel mining sector in Indonesia, Trimegah Bangun Persada’s IPO could potentially be among the biggest in the country this year. Before the nickel miner, state-owned company PT Pertamina Geothermal Tbk raised $596 million in its IPO.
Bisma Bhaktiar, Executive Director at the Center for Energy and Mining Law Studies (PUSHEP), said that nickel has become a prospective commodity in line with the development of electric vehicles (EV) in Indonesia. “Nickel prices continue to grow with rising demand in the market,” he told DealStreetAsia.
As DealStreetAsia reported, a slew of ‘old economy’ stocks in sectors ranging from energy to commodities has either debuted or are preparing to debut on IDX this year. Thanks to these traditional businesses, the country’s overall IPO scene may remain buzzing even as the outlook for tech listings remains bleak in 2023.