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Amman Mineral Internasional, the owner of the second-largest gold and copper mine in Indonesia, is poised to make its debut on the Jakarta Stock Exchange this week following the country's largest initial public offering (IPO) of the year.
The shares are scheduled to start trading on Friday after being sold at 1,695 rupiah each, raising a total of 10.7 trillion rupiah (US$711 million). According to data compiled by Bloomberg, it was the biggest new share sale in Asia this year, excluding mainland China.
This IPO adds to the flurry of activity in Southeast Asia's largest equity market. IPOs in Jakarta have already raised US$2.2 billion since the beginning of the year, surpassing the total for the entire previous year and overtaking listing activity in Hong Kong, which has traditionally been Asia's main hub for IPOs. Amman Mineral becomes the largest newcomer to the Indonesian exchange since the listing of e-commerce platform GoTo Group in April 2022.
Over the past five years, only seven companies in Indonesia have listed after raising more than US$500 million, according to Bloomberg data. On their first trading day, these companies saw an average 7% increase in their stock prices.
Amman Mineral owns the world's fifth-largest copper mine, as reported in the offering's prospectus based on data from Wood Mackenzie. The company's net income in 2022 reached an impressive US$1.09 billion, more than triple the previous year's figure.
Analyst Ethan Aw from Aequitas Research expressed optimism, stating, "Since the company has delivered strong earnings growth, there should be upside upon listing."
The proceeds from the IPO will be used for working capital, debt repayment, and funding refinery projects in West Nusa Tenggara province. BNI Sekuritas, CLSA Sekuritas Indonesia, DBS Vickers Sekuritas Indonesia, and Mandiri Sekuritas served as the underwriters for the offering, facilitating the successful launch of Amman Mineral Internasional on the Jakarta Stock Exchange.
By fLEXI tEAM
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