Archi Indonesia, Gold Mining Company Owned By Rajawali Corpora's Boss Conglomerate Peter Sondakh Eyes IDR 3.9 Trillion From IPO

JAKARTA - PT Archi Indonesia Tbk will finally be listed on the Indonesia Stock Exchange. The gold mining company offers an initial price of Rp. 750-Rp. 800 per share in the context of an initial public offering (IPO).

Archi Indonesia, the company owned by the boss of Rajawali Corpora conglomerate Peter Sondakh, will issue a maximum of 4,967,5 million shares of common stock in the name, with a nominal value of IDR 10 for each share.

This will represent a maximum of 20 percent of the issued and paid-up capital of the company after the IPO. This means that the company will reap fresh funds of around Rp. 3.7 trillion to Rp. 3.9 trillion from this action

EVP Investment Banking of PT Mandiri Sekuritas, Shery Juwita Lestari said that the shareholders who released their shares included PT Rajawali Corpora by offering five percent which is new shares of the number of shares issued after the IPO.

"For the old shares offered a maximum of 15 percent of the eniarged capital. The offering price is in the range of Rp 750-Rp 800 per share," said Shery in a virtual public expose,

The initial offering period starts from May 31, 2021 to June 9, 2021. Final registration with the Financial Services Authority (OJK) is targeted at June 11, 2021, an effective statement from the OJK is expected to be June 18, 2021. The public offering period will be on June 22-24, 2021. , electronic distribution of shares on June 25, 2021.

"Listing on the stock exchange on June 28, 2021," he explained.

Deputy President Director of Archi, Rudy Suhendra said, the company's goal to conduct an IPO is to develop and accelerate business growth plans, while improving corporate governance.

"By listing our company's shares on the IDX, Archi intends to accelerate the company's performance growth plans, and further improve good corporate governance practices with direct supervision from the Financial Services Authority (OJK) and IDX as regulators, as well as the general public," said Rudy.

Rudy also emphasized that Archi Indonesia is one of the companies that has full exposure to the gold mining business, where this mine is a commodity with a stable value and very attractive to investors.

"Gold is often considered as one of the safest commodities, with a trusted and sustained investment value from time to time," he said.

In connection with this corporate action, Archi will use the audit consolidated financial report which ended on December 31, 2020, and has appointed PT Citigroup Sekuritas Indonesia, PT Credit Suisse Sekuritas Indonesia, PT Mandiri Sekuritas, PT BNI Sekuritas, and PT UOB Kay Hian Sekuritas as guarantor. implementing the issuance of securities from the IPO carried out.

Archi Indonesia's Director of Finance or Chief Financial Officer (CFO), Adam Jaya Putra said, 90 percent of the funds obtained from the IPO will be used by the company or its subsidiaries, to pay off part of the principal of the bank's debt, while the rest will be used to finance operational activities and working capital.

Archi Indonesia has a mine site in North Sulawesi province since 2011. This mine has produced 1.9 million ounces (equivalent to 58 tons) of gold as of 2020 and has gold Ore Reserves of 3.9 million ounces (equivalent to 121 tons) as of the end of December 2020.