Officially Listing, Amman Mineral (AMMN) IPO Value Is The Largest This Year

JAKARTA - PT Amman Mineral Internasional Tbk (AMMN) has officially listed its initial public offering (IPO) on the Indonesia Stock Exchange (IDX) today. AMMN is listed as the issuer with the largest public offering value of IDR 10.73 trillion throughout 2023.

AMMN issued 6.32 billion ordinary shares or equivalent to 8.8 percent of shares to the public. From the issued and fully paid capital after the IPO with an offering price of IDR 1,695 per share.

President Director of PT Amman Mineral Internasional Tbk, Alexander Ramlie said that the Company believes that the prospect of a copper mining business will experience a positive trend. This belief is based on an increase in demand for copper in the world.

This increase occurred in line with the growth of the industrial sector, renewable energy, and electric vehicles. AMMN sees the market dynamics as an opportunity to strengthen the company's position as one of the largest copper producers in the world," Alexander said in an official statement, Friday, July 7.

Referring to Wood Macon data, the Green Stone mine is the second largest copper and gold mine in Indonesia, and has the fifth largest copper equivalent reserves in the world when combined with the Elang exploration project.

AMMN's ore reserves data for the Green Stone mine and the Elang exploration project as of December 31, 2022, according to the 2012 JORC Code (Australation of the Joint Ore Reserves Committee) amounted to 17.12 billion pounds of copper and 23.2 million ounces of gold.

Through its subsidiary, PT Amman Mineral Nusa Tenggara (AMNT) is currently mining Phase 7 and Phase 8 development which is expected to extend the age of the Green Stone mine by 2030.

The company will also prepare the Elang exploration project to start mining operations from 2031 to 2046.

Use of IPO Funds

Through the acquisition of funds in the IPO, AMMN will allocate funds for a number of expansion projects. First, funds amounting to Rp1.79 trillion will be used as capital deposits to PT Amman Mineral Industri (AMIN) to finance capital expenditures on smelter projects and refining precious metals in West Sumbawa Regency (KSB), West Nusa Tenggara (NTB) Province.

Second, funds amounting to Rp3.05 trillion will be used to pay off debts to PT Amman Mineral Nusa Tenggara (AMNT).

Third, the remaining funds will be used to deposit capital to AMNT to finance capital expenditure for the construction plant expansion project and the gas and steam power plant project in KSB, NTB Province.

As previously reported, PT Amman Mineral Internasional Tbk has officially been listed on the Indonesia Stock Exchange (IDX) by recording its initial public offering (IPO). When opened, AMMN's share price rose 2.94 percent to 1.745 from the offering price.