Targeting IDR 884.6 Billion Of Funds For Nickel Business, Mine Construction Services Company Hilcon IPO Starting From IDR 250 Per Share

Photo: Doc. Hilcon

JAKARTA - The mining construction services company PT Hillcon Tbk plans to hold an initial public offering (IPO) to the public of 2.21 billion shares. The number of shares offered reached 15 percent of Hillcon's paid-in capital after the stock IPO.

President Director of Hillcon, Hersan Qiu said, the IPO was preceded by an initial offering on June 15-29, 2022. "We have appointed PT BRI Danareksa Sekuritas, PT Sucor Sekuritas Indonesia and PT Mirae Asset Sekuritas Indonesia as joint underwriters," he said in a statement released on Monday. quoted Thursday 16 June.

Hersan said that Hillcon's initial price was between Rp. 250-400 per share. "From the stock IPO, the company in the fields of holding activities, management consulting as well as mining and construction services will obtain additional capital of a maximum of IDR 884.6 billion," said Hersan. According to Hersan, 55 percent of the IPO stock funds will be used for working capital for PT Hillconjaya Sakti (HS). The remaining 45 percent will be used for capital expenditures, namely the purchase of equipment to support HS operational activities. Hillcon shares with a nominal value of Rp. 20 per unit will be listed and start trading on the IDX on July 20, 2022. "We hope that the Financial Services Authority ( OJK) can issue an effective statement for Hillcon's IPO on July 12, 2022," he said. Hersan said, Hillcon managed to record revenue of Rp. 1.98 trillion in 2021, an increase of 94 percent, from Rp. 1.02 trillion in 2020. Hillcon's gross profit rose 138 .69 percent, from IDR 341.07 billion in 2020 to IDR 814.12 billion in 2021. Hillcon posted a net profit of IDR 404.3 billion in 2021, soaring 365.48 percent, from Rp. 86.86 billion in 2020. "The company's net profit margin will grow to 20 percent in 2021, from 9 percent in 2020," he said. Meanwhile, Hillcon's total assets increased by 87.96 percent, from Rp. 1.28 trillion in 2020 to Rp. 2.4 trillion in 2021. Meanwhile, total liabilities will increase by 52.11 percent, from Rp. 1.19 trillion to Rp. 1.8 trillion. Meanwhile, Hillcon's total equity soared by 552.17% to IDR 600 billion in 2021, from IDR 92 billion in 2020.

Hersan added, Hillcon's IPO plan is part of efforts to develop business, create optimal value for the company and stakeholders and to create an ecosystem for the Indonesian and global nickel industry. employment. “Hillcon has good growth potential along with technological developments. Hopefully this step will strengthen Hillcon's steps to become a player in the nickel industry,” said Hersan. In the future, Hillcon will have a complete nickel business ecosystem. This is in line with the growth of electric car sales and the increasing consumption of nickel metal in the battery industry. This ecosystem is supported by domestic nickel producers. "Indonesia is the largest nickel producer in the world," he said.

Hersan explained, sales of the electric car industry will double in 2021 to reach 6.4 million units. The growth of electric cars is estimated to reach 38 million units in 2030, or 40 percent of total world car sales. The rapid consumption of electric cars will be the key to the growth of nickel consumption in this decade. Nickel is used by Electric Car Batteries because it provides a long mileage when compared to other batteries. According to Hersan, investment by the Electric Car Battery Industry is currently focused on Nickel-based batteries through companies such as CATL, LG Energy Solution, Tesla. "Nickel consumption for electric cars is estimated to reach 1.1 million tons in 2030 compared to 200 thousand tons in 2022," he said. Hersan said, world nickel consumption rose 17.2 percent in 2021 to 2.8 million tons compared to 2020 which grew only 0.6 percent. A total of 1.96 million tons of nickel metal (69 percent) was consumed by the Stainless Steel Industry. The nickel metal consumption of the battery industry rose 80 percent in 2021 to 360,000 tons, the majority of which came from the electric car industry. Nickel consumption is estimated to almost double to 4.8 million tons in 2030 compared to 2.8 million tons in 2021. Hersan estimates that the stainless steel industry consumption will grow 38 percent in 2030 to 2.7 million tons, from 1.96 million tons in 2021. The battery industry, led by electric car batteries, is expected to quadruple to 1.4 million tons in 2030, compared to 360 thousand tons in 2021. Indonesia as the world's largest nickel producer will have 950 thousand tons of nickel metal in 2021, or 35 percent of the total world nickel production. Indonesia also has the world's largest proven nickel reserves. Indonesia has 22 percent of proven nickel reserves (21 million tons of nickel metal). "According to ESDM, the estimated reserves are 41 million tons of nickel metal," concluded Hersan.