keywords :
Indonesian copper miner Amman Mineral
Internasional aims to raise up to 12.94-trillion rupiah ($880.6-million) in a
listing scheduled for June 28 to July 3, it said in its prospectus on
Wednesday.
The listing would be the biggest initial
public offering (IPO) in Southeast Asia this year, according to Refinitiv data,
surpassing the listing of Indonesian nickel producer Trimegah Bangun Persada,
known as Harita Nickel, that raised 1-trillion rupiah in April.
Indonesia's IPO market is one of the world's
hottest this year. First-time share sales have raised $1.58-billion as of
April, second only to China in the Asia-Pacific region excluding Japan and
ahead of traditional powerhouse Hong Kong, according to Refinitiv data.
The announcement of the Amman Mineral IPO
comes a day after agri-food giant Olam Group said it did not expect the dual
listing of its agricultural unit, Olam Agri, in Singapore and Saudi Arabia to
be completed in the first half of this year as originally planned, citing
failure to obtain "all the necessary regulatory approvals".
Amman Mineral's prospectus showed book
building is set to start on Wednesday with an offering price in a range of 1
650 rupiah to 1 775 rupiah per share.
The Jakarta-headquarted company will use
IPO proceeds to pay off some debt and fund several projects, including
completing a copper smelter it is building in Sumbawa island, it said in its
prospectus.
The smelter, which has input capacity of
900,000 tonnes of copper concentrate to produce 220 000 t of copper cathode
annually, will cost the company $983-million in total, company and government
data showed.
The Indonesian government in April exempted
Amman until May 2024 from a planned June ban on raw mineral exports, to give
the firm a revenue stream to complete the smelter project, which was
half-finished as of January.
A unit of Amman Mineral, part of Indonesian
energy group Medco Energi Internasional, operates the Batu Hijau mine in the
West Nusa Tenggara province.
Amman Mineral Internasional acquired the
Batu Hijau mine from US miner Newmont Mining and Japan's Sumitomo Corp and its
partners in 2016.
A strong market debut by Amman Mineral on
July 5 could boost sentiment for upcoming IPOs in Indonesia this year.
They include Pertamina Hulu Energi, the
upstream arm of Pertamina, that could raise at least 20-trillion rupiah, and
State-owned fertiliser company Pupuk Kalimantan Timur that could raise
$500-million.