According to foreign sources on May 31st, it is reported that Indonesian copper miner Amman Mineral International stated in its prospectus on Wednesday that it plans to go public from June 28th to July 3rd, raising up to IDR 12.94 trillion (USD 880.6 million).
According to Reinitiv's data, this listing will be the largest public offering (IPO) in Southeast Asia this year, surpassing Indonesia's nickel producer Trimegah banun Persada (also known as Harita nickel) in raising IDR 10 trillion in April.
Indonesia's IPO market is one of the hottest global IPO markets this year. According to Reinitiv's data, as of April, the initial stock issuance had raised $1.58 billion, second only to China in the Asia Pacific region outside of Japan and surpassing traditional Hong Kong.
The day before Amman Mining announced its IPO, agricultural and food giant Olam Group stated that it expects its agricultural subsidiary Olam Agri to not complete its dual listing in Singapore and Saudi Arabia as planned in the first half of this year, citing the failure to obtain "all necessary regulatory approvals".
The prospectus of Amman Mining shows that bookkeeping work will begin on Wednesday, with an offering price ranging from IDR 1650 to IDR 1775 per share.
The Jakarta based company stated in its prospectus that it will use the proceeds of its IPO to repay some of its debts and provide funding for several projects, including the completion of a copper smelter currently under construction on Sumbawa island.
The input production capacity of this smelter is 900000 tons of copper concentrate, with an annual production capacity of 220000 tons of cathode copper. According to data from the company and the government, the smelter will cost 983 million US dollars.
In April, the Indonesian government waived Amman's raw ore export order until May 2024, providing the company with a source of income to complete the smelter project, which had already been completed in half as of January.
A subsidiary of Amman Mineral, a subsidiary of Medco Energy International, an Indonesian energy group, operates the Batu Hijau coal mine in West Nusa Tenggara Province.
Amman International Mining Company acquired the Batu Hijau mine from American mining company Newmont Mining Corp and Sumitomo Corporation of Japan and their partners in 2016.
Amman Mineral's strong performance on its first day of listing on July 5th may boost investors' confidence in Indonesia's upcoming IPO this year.
These include Pertamina Hulu Energi, an upstream subsidiary of Indonesian Petroleum Company (Pertamina), which may raise at least 20 trillion Indonesian rupees, and Pupuk Kalimantan Timur, a state-owned fertilizer company, which may raise $500 million.
(1 USD=146950000 rupees)
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