https://www.miningweekly.com
Mining|supply-chain
Mining|supply-chain
mining|supply chain

Mining giant makes debut in Indonesia’s biggest IPO this year

12th April 2023

By: Bloomberg

  

Font size: - +

Metal and mining firm PT Trimegah Bangun Persada is set to debut in Jakarta on Wednesday after raising 10-trillion rupiah ($672-million) in Indonesia’s largest initial public offering this year. The sale attracted high investor demand and sheds light on the country’s electric-vehicle sector.

The company, also known as Harita Nickel, offered about eight-billion shares at 1 250 rupiah apiece. They were sold at the top of a marketed range that started at 1 220 rupiah. Trading is expected to begin at 9:00 a.m. local time.

The listing attracted attention from domestic and foreign investors seeking to profit from the EV supply chain, which isn’t largely represented in Jakarta’s stock exchange. Harita Nickel is the first company in Southeast Asia’s largest economy to process low-grade nickel ore into battery grade metal, using a method known as high-pressure acid leaching, or HPAL.

A good opening could help further boost sentiment toward the EV sector, which has been in focus given President Joko Widodo’s plan to build an end-to-end EV supply chain onshore. The nation has been seeking to lure investments in the sector to help it capitalize on its nickel reserves, which is the world’s biggest.

Harita Nickel’s performance could also provide investors cues ahead of the debut by nickel mining and processing firm PT Merdeka Battery Materials on April 18, following its 8.75-trillion rupiah IPO.

“While the firm hadn’t released any official data on demand, the bookbuild had reportedly been oversubscribed,” Clarence Chu, an analyst at Aequitas Research who publishes on Smartkarma, said of Harita Nickel’s share sale.

Regional sovereign wealth funds and and international investors bought shares in the IPO, Chu wrote in a note on April 11, and since the offering didn’t count on cornerstone investors, “around 12.6% of the firm’s total outstanding shares will be available for trading on debut.”

Prior to Harita Nickel’s IPO, 11 companies debuted in Jakarta after raising at least $500 million, according to data compiled by Bloomberg. Within that group, three dropped on the first day of trade, two ended unchanged and six finished above the listing price. The average increase for the first session was 8.1%, the data show.

Credit Suisse Group, BNP Paribas, Citigroup and PT Mandiri Sekuritas are joint global coordinators for Harita Nickel’s share sale.

Edited by Bloomberg

Comments

Showroom

Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 
Goodwin Submersible Pumps Africa (Pty) Ltd
Goodwin Submersible Pumps Africa (Pty) Ltd

Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
19th June 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.265 0.311s - 89pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: