PT Archi Indonesiahas postponed its planned initial public offering of as much as $500 million because of weak gold prices and falling stocks, according to people with knowledge of the matter.
The gold miner, a unit of Indonesian conglomerate Rajawali Group, made the decision aftergaugingdemand for the Jakarta IPO last month, said the people, who asked not to be named because the information is private. The deal could be revived if the markets improve, said one of the people.
At $500 million, the offering would have been Indonesias biggest IPO since airline PT Garuda Indonesia raised $524 million in 2011, according to data compiled by Bloomberg.
Gold has fallen 14% from a record high in August amid optimism that coronavirus vaccines will fuel a global economic recovery. The benchmark Jakarta Stock Exchange Composite Index, has declined 7% from a nearly three-year high in January.
Other companies in the region have also seen their listing plans put on hold because of the market turmoil.Thai Beverage Pclsaid on Friday it woulddeferthe potential spinoff and listing of its brewery unit in Singapore, citing the uncertainty ofmarket conditionsand the worsening Covid-19 pandemic. PT Kalbe Farma, Indonesias biggest drugmaker by market value, postponed the IPO of its nutritional food unit PT Sanghiang Perkasa due to valuation concerns, Bloomberg Newsreportedin March.
Archis advisersrestarted preparationslast year for a potential first-time share sale in Jakarta, Bloomberg News reported.
The company operates a gold and silver mine in North Sulawesi known as Toka Tindung, according to Rajawaliswebsite. The mine had about 3.5 million gold equivalent ounces in mineral resources and 2 million in ore reserves as of June 2016. Representatives for Rajawali and Archi did not immediately respond to requests for comment.