A subsidiary of PT Adaro EnergyTbk (ADRO), PTAdaro Minerals Indonesiaplans to target a fund raising of Rp 756.07 billion through aninitial public offering(IPO).
Based on the prospectus issued on Thursday (12/9/2021), the coal mining company will release around 6.04 billion shares or around 15 percent of the total capital after the IPO.The offering price from the IPO reached Rp 100 to Rp 125 per share, bringing the total funds raised to Rp 756.07 billion.
PT Ciptadana Sekuritas Asia acts as the underwriter for the issuance of securities in this IPO.While the underwriters will be determined later.
As planned, the initial offering period will be from 9 to 16 December 2021. The estimated effective date is 22 December 2021. The public offering period is from 24 to 28 December 2021 and listing on the IDX on 30 December 2021.
From this IPO action, Adaro Minerals will use about 60% of which. Around 60% will be used for the purposes of providing loans to its subsidiary, namely PT Maruwai Coal (MC) for repairs and capacity building of coal mining infrastructure and supporting infrastructure.This is in line with the increase in coal production and exploration costs for the development of mining techniques in Lampunut for the period 2022 to 2023.
The remainder will be used to repay part of the principal loan from PT Adaro Energy Tbk (ADRO).As of August 2021, Adaro Minerals’ total debt to Adaro Energy reached US$ 186.9 million.This loan will mature on August 16, 2026.
Adaro Minerals is a subsidiary of Adaro Energy with 81.76% ownership.Apart from Adaro Energy, the other shareholders are PT Adaro Mining Technologies and PT Alam Tri Abadi with 10.54% and 7.7% ownership, respectively.
Adaro Minerals was established in 2007 under the name PT Jasapower Indonesia.In 2021, the company through PT Alam Tri Daya Indonesia completed the acquisition of 99% ownership of PT Lahai Coal, Maruwai Coal, PT Sumber Barito Coal, PT Kalteng Coal and PT Juloi Coal and changed its name to Adaro Minerals.Adaro Minerals’ main activity is metallurgical coal mining.