Archi Indonesia, A Mining Company And Gold Producer Owned By The Conglomerate Peter Sondakh, Wants To Do An IPO

The Peter Sondakh conglomerate. (Photo: Doc. Rajawali Corpora)

JAKARTA - A gold mining company from the Rajawali Group, PT Archi Indonesia, is reportedly going to take the floor on the Indonesia Stock Exchange by conducting an Initial Public Offering (IPO).

Quoting Bisnis.com, Wednesday, March 17, in this process the company conducts education with investors from March 12, 2021, to March 26, 2021. Later, the IPO proceeds will be used to repay existing loans.

"Credit Suisse will act as joint lead manager for the action", wrote Bisnis.com, which launched Bloomberg.

Archi Indonesia is one of the many business entities owned by PT Rajawali Corpora or the Rajawali Group. This company is owned by conglomerate Peter Sondakh, the 18th richest man in Indonesia with $ 1.5 billion in assets.

PT Archi Indonesia owns 100 percent of shares in the Toka Tindung gold and silver mining project in North Sulawesi. The mining rights for the company's Toka Tindung project are through the Contract of Work (KK) of two Archi's business entities, namely PT Meares Soputan Mining and PT Tambang Tondano Nusajaya.

The two KKs have a total of around 40 thousand hectares valid until 2041, with a possible extension of 2x10 years. Since its establishment in 2010, Archi Indonesia has produced more than 8 tonnes of gold per year.

Looking at the performance, Archi Indonesia posted revenue of $ 393.3 million as of September 2020. This achievement was up 2.5 percent compared to 2019's acquisition of $ 838.69 million.

The profit for the year attributable to the owners of the parent entity or Archi Indonesia's net profit amounted to $ 123.33 million. This achievement grew 32.6 percent compared to 2019's acquisition of $ 92.99 million.

Actually, Archi Indonesia had almost IPO at the end of 2014. However, this action had to be postponed due to the market situation which was considered not conducive due to volatile commodity prices and uncertain global macroeconomic conditions.

In fact, if the IPO is completed, Archi Indonesia has the potential to reap fresh funds of up to IDR 3.9 trillion. This is because the gold producer Lotus Archi originally wanted to sell as many as 1.6 billion shares in the price range of IDR 1,895 - Rp2,445.