Trimegah Bangun Persada Targets IDR 9.7 Trillion Funds From IPO

Photo: Doc. Trimegah Bangun Persada

JAKARTA - The mining and downstream nickel company PT Trimegah Bangun Persada Tbk plans to sell shares to the public through Initial Public Offering (IPO) to a maximum of 12.1 billion on April 5-10, 2023. The total IPO shares is equivalent to a maximum of 18 percent of the issued and paid-up capital to the public after the IPO with a nominal value of IDR 100 per share.

The initial offer or book building of this stock called NCKL starts on March 15-24, 2023. The plan is that NCKL shares will be listed on the Indonesia Stock Exchange (IDX) on April 12, 2023.

President Director of PT Trimegah Bangun Persada Tbk, Roy A. Arfandy explained, the company hopes to reap fresh funds of around US$650 million (or around Rp9.7 trillion) to support project construction completion, increase production capacity, pay off some loans, and additional working capital.

"PT TBP Tbk will also allocate a maximum share of 0.5 percent or 60.5 million shares of the total IPO shares for the share allocation program to Company employees (Employee Stock Allocation, ESA) where the exercise price of ESA is the same as the offering price," said Roy, in Jakarta, Friday, March 17.

PT TBP Tbk appointed PT BNP Paribas Sekuritas Indonesia, PT Citigroup Sekuritas Indonesia, PT Credit Suisse Sekuritas Indonesia, and PT Mandiri Sekuritas as underwriters for the issuance of securities. Meanwhile, the underwriters were appointed by PT UOB Kay Hian Sekuritas, PT OCBC Sekuritas Indonesia, and PT DBS Badmin Sekuritas Indonesia.

Interesting information for potential investors, PT TBP Tbk will distribute dividends to shareholders of a minimum of 30 percent of net profit, depending on the cash flow and investment plans of the company, Indonesian law and regulations, as well as other requirements.

"The company has distributed dividends since 2012 and is planned to distribute dividends using the 2022 financial year which will be distributed in 2023," said Roy.

PT TBP Tbk is a company with upstream and downstream capabilities in the nickel industry. The company prioritizes sustainable environmental management for more than 10 years on Obi Island, South Halmahera, North Maluku. The company is also optimistic about the nickel processing business going forward.

The upstream sector is nickel ore mining that produces singles and limousines. Meanwhile, the downstream is in the form of melting and refining nickel ore which produces Feronicle as the main raw material for the manufacture of non-stainless steel (stainless steel) and MHP (Mixed Hydroxide Precipitate) as well as its derivative products Nickel Sulfat and Kobalt Sulfat which are the main raw materials for the manufacture of electric vehicle battery precursors.

Currently, PT TBP Tbk operates two active nickel laterite mining projects covering an area of 5,523.99 hectares in Kawasi Village, South Halmahera, North Maluku through two mining concessions. The company also has two prospects for nickel mining covering an area of 3,660.24 hectares located on Obi Island.

"PT TBP Tbk is in a strategic position to benefit from the increasing demand for batteries in the electric vehicle industry, in response to energy transition efforts. This will increase demand for nickel ore and MHP," said Roy.

Roy stated that PT TBP Tbk will continue to support the efforts to downstream nickel echoed by the government and hopes to make a valuable contribution in the creation of a refilled battery industry ecosystem for electric vehicles in Indonesia.

Meanwhile, peering into financial performance, PT TBP Tbk's revenue from contracts with customers reached Rp9.04 trillion during the period January to November 2022. This achievement rose 17.32 percent compared to the same period the previous year.

PT TBP Tbk also recorded other revenues of Rp231.30 billion, an increase of 255.82 percent compared to the same period the previous year of Rp65 billion. The company also managed to reduce sales, general and administrative expenses by 9.05 percent from Rp873.45 billion to Rp794.43 billion.

Profit for the current period of PT TBP Tbk shot up 207.95 percent from Rp1.39 trillion as of November 2021 to Rp4.30 trillion as of November 30, 2022. Profit per share also rose from Rp23.16 per share to Rp78.63.

Next, PT TBP Tbk's total assets recorded an increase of 12.22 percent from Rp29.93 trillion as of September 30, 2022 to Rp33.59 trillion as of November 30, 2022. Total equity rose from Rp12.69 trillion to Rp13.97 trillion as of November 30, 2022, with total liabilities increasing from Rp17.24 trillion as of September 30, 2022 to Rp19.61 trillion as of November 30, 2022.