Raup Dana Rp552 Miliar Dari IPO, Hillcon Allocate Dana Untuk Geber Produksi Nickel

Finance Director Hillcon Jaya Angdika. (Photo: Maria Trisnawati/VOI)

JAKARTA - PT Hillcon Tbk (HILL) officially listed its initial shares (IPO) on the Indonesia Stock Exchange (IDX) on Wednesday, March 1, 2023. Through the IPO, the company earned fresh funds worth IDR 552.8 billion.

By issuing shares with an offering price of IDR 1,250 per share as much as 442 million new shares or as much as 15 percent of the company's issued and fully paid capital.

Hillcon Finance Director Jaya Angdika said the proceeds from the IPO will be used to support Hillcon's business development in developing the nickel industry in Indonesia.

"The 55 percent fund for working capital is related to mining production costs, including costs related to fuel, overhead costs, maintenance of all heavy equipment," he told the media on the Indonesia Stock Exchange, Wednesday, March 1.

Meanwhile, the remaining 45 percent of the funds will be used for capital expenditures consisting of purchasing tools to support HS' operational activities, namely heavy equipment (flating and supporting fleets) along with other supporting facilities.

Meanwhile, in 2023 Hillcon targets to produce 15 million tons of nickel ore.

This target is increasing from the achievement in 2022 which has succeeded in producing 9 million metric tons of nickel.

"Currently, we hope that 9 million metric tons will continue to increase this year," added Jaya.

Jaya added that the company also targets revenue of up to IDR 6 trillion in 2023 and net profit of IDR 800 billion.

Just so you know, as the largest nickel producer in the world, Indonesia is predicted to produce around 1.2 million tons of nickel by 2022, equivalent to 37.5 percent of total global production.

Indonesia is also the second largest stainless steel producer in the world after China.

In the event that nickel reserves are proven, Indonesia has a share of 22 percent or the equivalent of 21 million tons of nickel metal, and is predicted to remain the largest contributor to the supply of nickel and nickel to be finished in the world with an estimated market share of 38 percent by 2024.

The nickel industry is one of the sectors that is growing rapidly in Indonesia.

nickel products are currently experiencing very high demand, especially in the form of feronikel and NPI (nickel pig iron).

Indonesia also exports Mixed Hydroxide Precipitate (MHP) which is then further processed into nickel sulphate, the main ingredient for electric vehicle (EV).

In its development, the Indonesian nickel sector is expected to increase its production capacity to produce EV batteries in the country so that it can provide an increase in domestic nickel demand in Indonesia.