After The IPO, Hillcon Targets Profits Of IDR 700 Billion In 2023

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Hillcon Tbk (HILL), a prospective issuer providing civil construction services and nickel and coal mining services, is targeting to achieve a net profit of around IDR 700 billion by 2023, after the company conducts an Initial Public Offering (IPO).

"With the IPO, the company targets this year's revenue growth to reach 1.5 times to 2 times from the previous year and is expected to print a net profit of around IDR 700 billion", said Director of Hillcon Jaya Angdika in a written statement, quoted from Antara, Saturday, February 11.

Hillcon will receive IDR 553 billion from IPO emissions after its initial offering period or bookbuilding experienced an excess demand of 1.3 times with long-term demand from investors dominating.

"The high interest of institutional investors in HILL stocks shows that our business, especially nickel mining, is an industry with very bright growth prospects," said Hillcon CEO Hersan Qiu.

After the initial offering period from January 12 to February 3, 2023, the estimated effective date is on February 15, 2023, and is followed by an estimated public offering period on February 17, 2023.

Then, the estimated allotment date on February 21, 2023, followed by share distribution is estimated to be on February 22, 2023 and is expected to start recording on the Indonesia Stock Exchange (IDX) on February 23, 2023.

Hillcon appointed PT Mirae Asset Sekuritas Indonesia and PT Sucor Sekuritas as underwriters for the issuance of securities, and PT Macquarie Sekuritas Indonesia as underwriters for the IPO HILL effect.

Hersan revealed that 55 percent of the IPO proceeds will be used for working capital for PT Hillconjaya Sakti (HS) for mining production costs, including fuel costs, overhead, and maintenance of all equipment.

The remaining 45 percent will be used for capital expenditures or capex for purchases of heavy equipment such as playing fleets and supporting fleets that support HS' operational activities in the nickel sector.

The company, which operates in Kalimantan, Sulawesi and North Maluku, has earned around IDR 3.2 trillion in revenue, with a parent profit of around IDR 300 billion until December 2022.

Indonesia as the world's largest nickel producer is estimated to produce around 1.2 million tonnes of nickel by 2022 or 37.5 percent of global production.

In addition, it has 22 percent of nickel-proven reserves (21 million tonnes of nickel nickel), with an estimated market share of 38 percent of finished nickel by 2024.