Indonesian nickel company Merdeka Battery Materials surged 12% in its trading debut on Tuesday after raising 8.75 trillion rupiah ($591.82 million) in the country’s third largest initial public offering this year. The stock opened at 805 rupiah, compared with its IPO price of 795 rupiah, on the Indonesian stock exchange. It later traded at 890 rupiah, versus the local stock index’s 0.23% rise.
The positive debut signals investors’ growing appetite for Indonesia’s electric vehicle (EV) sector.
Southeast Asia’s largest economy has been stepping up its efforts to become a major player in the global EV supply chain by tapping onto its nickel reserves, which are the largest in the world. Merdeka Battery’s peer, Trimegah Bangun Persada, also known as Harita Nickel, debuted on the local stock exchange last Wednesday with a positive showing after raising 10 trillion rupiah.
The stock has climbed 12% versus its IPO price of 1,250 rupiah since its market debut.
Reuters