Gold miner seeks $860 million in the largest Jakarta IPO of 2023
Indonesia's PT Amman Mineral plans to raise up to 12.9tn rupiah ($860m) in an IPO, which would be the country's largest this year. The offering, which will be listed on the Jakarta stock exchange on 5 July, would offer 7.29 billion shares at a price range of 1,650 to 1,775 rupiah per share.
PT Amman Mineral Internasional, the owner of Indonesia's second-biggest gold and copper mine, intends to raise up to 12.9 trillion rupiah ($860 million) in what would be the country's largest IPO this year, reported Bloomberg.
According to Bloomberg, the company would offer 7.29 billion shares at a price range of 1,650 to 1,775 rupiah per share, with a July 5 listing on the Jakarta stock exchange.
The offering reaffirms Indonesia as one of the busiest IPO markets this year, with proceeds raised increasing 67% since the beginning of January compared to the same period in 2022. This contrasts with a substantial drop in traditional listing venues such as New York and Hong Kong. Recent listings in the renewable energy and electric car supply chains have attracted both domestic and global investors.
“The IPO would appeal to foreign investors as it provides them access to one of the largest copper miners in the world with one of the lowest production costs globally,” said Mohit Mirpuri, a senior partner at SGMC Capital in Singapore. “Amman ticks all the boxes being a fully integrated copper mine with a strong operational track record, maintaining one of the lowest costs of production, with favorable industry dynamics.”
Only four Asian listings garnered more than $800 million this year, all of which came from mainland China. After raising 10 trillion rupiah in April, Amman Mineral's IPO will surpass PT Trimegah Bangun Persada, also known as Harita Nickel, as Indonesia's largest IPO in 2023. It is also expected to be the largest debut in the country since PT GoTo Gojek Tokopedia in April 2022.
Amman Mineral's second largest stakeholder, PT Medco Energi Internasional, gained as much as 4.3% in Jakarta before falling to 1.1% as of 11:42 a.m. local time. According to the prospectus, the proceeds of the offering would be used for working capital, debt repayment, and to fund refinery projects in West Nusa Tenggara province.
BNI Sekuritas, CLSA Sekuritas Indonesia, DBS Vickers Sekuritas Indonesia, and Mandiri Sekuritas are the underwriters.
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