Posted on 20 Mar 2023
Indonesian nickel company PT Trimegah Bangun Persada (TBP), also known as Harita Nickel, plans to raise IDR 9.7 trillion ($631.4 million) in an initial public offering (IPO) next month, Kallanish reports.
Company president Roy Arfandy said in a statement on Friday the company intends to issue 12.1 billion shares between 5-10 April, which corresponds to up to 18% of its issued capital. The listing on the Indonesia Stock Exchange (IDX) is planned for 12 April.
TBP is part of the Indonesian conglomerate Harita Group. It operates two nickel laterite mining projects in Kawasi Village, South Halmahera, North Maluku, and owns two nickel mining prospects on Obi Island.
According to Roy, the IPO will unlock roughly $650m to support the completion of project construction, increase production capacity, pay off some loans and provide additional working capital. He suggested this will help the company to quadruple nickel production in 2023, from 2022 levels.
“TBP’s focus is to become an integrated nickel mining and processing company from upstream to downstream,” he adds. “TBP is strategically positioned to benefit from the growing need for batteries in the electric vehicle industry, to respond to energy transition initiatives. This will increase demand for both nickel ore and MHP [mixed hydroxide precipitate].”
The company currently produces ferronickel, key for the production of stainless steel, as well as MHP and its derivatives products – nickel and cobalt sulphates. The latter are fundamental raw materials for battery precursors.
Indonesia, home to the world’s largest nickel production and reserves, is pushing for value-creation in its supply chain, focusing on EV-based demand growth. TBP says it will continue supporting the government’s initiative to expand downstream capacity.
Local branches of BNP Paribas, Citigroup and Credit Suisse were appointed as joint lead underwriters along Mandiri Sekuritas.
Source:Kallanish
