JAKARTA - Conglomerate Garibaldi "Boy" Thohir is preparing to bring one of his businesses to the capital market. A subsidiary of PT Adaro Energy Tbk, namely PT Adaro Minerals Indonesia, is preparing to list its shares on the Indonesia Stock Exchange (IDX) through an initial public offering (IPO) scheme.
PT Adaro Minerals Indonesia Tbk is a metallurgical coal mining company. Adaro Minerals offers a maximum of 6,048,580,000 shares with a par value of Rp 100 per share, of which the number of shares issued is equivalent to 15 percent of the issued and fully paid capital after the IPO.
With an offering price in the range of Rp. 100 to Rp. 125 per share, Adaro Minerals has the opportunity to raise fresh funds of up to Rp. 756.07 billion. If there is an oversubscription in the centralized allotment, the company will issue a maximum of 604,858,000 common shares with a nominal value of Rp 100 per share.
In Adaro Minerals' initial IPO prospectus, quoted on Thursday 9 December, around 60 percent of the IPO proceeds will be channeled as loans to PT Maruwai Coal. By a subsidiary of Adaro Minerals, the funds are used for capital expenditures, in the form of repairs and capacity building for coal mining infrastructure and supporting infrastructure.
This was done by the company, in line with the increase in coal production and exploration costs for the purposes of developing mining techniques in Lampunut in the period 2022 to 2023.
The remaining 40 percent is used to pay as principal debt to its parent company, namely Adaro Energy (ADRO). The loan from ADRO was signed on August 16, 2021. As of August 31, 2021, the total debt reached 186.9 million dplat US
The loan, which matures on August 16, 2026, bears interest at LIBOR+4 percent. The plan is that after payment of part of the principal, the remaining balance of the debt will be around 171 million US dollars.
Always lost before
Just a note, from 2018 to 2020 Adaro Minerals has always been at a loss. It was only this year that Adaro Minerals' financial report suddenly turned positive.
As of August 31, 2021, Adaro Minerals' operating revenue skyrocketed 176.24 percent to US$206.62 million. Adaro Minerals' operating revenues as of August 2021 have already exceeded full-year operating revenues in 2018, 2019 and 2020 which were only in the range of US$100 million.
The surge in operating income was supported by the average coal selling price of US$143.9 per metric ton, an increase of 74.7 percent compared to the eight-month average selling price in 2020 of US$82.4 per metric ton.
In addition, coal sales volume for the eight months of 2021 increased by 59.3 percent to 1.43 million metric tons. As a result, for the first time, at least since 2018, as of August 2021 Adaro Minerals managed to record a net profit.
The value is also very significant, reaching 44.53 million US dollars compared to a net loss of 18.47 million US dollars as of August 2020.
The following is the schedule for the IPO of PT Adaro Minerals Indonesia Tbk:
- Initial Offer Period: 9 - 16 December 2021.- Estimated Effective Date: 22 December 2021.- Estimated Public Offering Period: 24 - 28 December 2021.- Estimated Allotment Date: 28 December 2021.- Estimated Electronic Share Distribution Date: 29 December 2021.- Estimated Listing Date on IDX: December 30, 2021
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