INITIAL PUBLIC OFFERING (IPO) - JAKARTA. Indonesian gold miner PT Archi Indonesia is planning to launch an initial public offering by next June, aiming to sell a 20% stake, the company said on Monday.
Archi Indonesia, which operates two gold mines on Sulawesi island, is a unit of Indonesian conglomerate Rajawali Corp. Rajawali has interests in mining, plantations, hotels and transportation.
Archi said that by listing shares, it aims to accelerate its growth plan and improve corporate governance through direct supervision from regulators and the general public, said its vice president, Rudy Suhendra.
Of the proceeds from the IPO, 90% will go to loan principal payment for Archi Indonesia and its subsidiaries, while the rest will finance their operations, said CFO Adam Jaya Putra.
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Archi Indonesia has also appointed PT Citigroup Sekuritas Indonesia, PT Credit Suisse Sekuritas Indonesia, PT Mandiri Sekuritas, PT BNI Sekuritas, and PT UOB Kay Hian Sekuritas to be underwriters of the IPO, the company said.
Archi Indonesia said it had produced more than 6.2 tonnes of gold per year since 2016.
In 2020, the company posted $123.3 million in net profit, it added. Gold prices had rallied in recent months and it is set to post its biggest monthly jump since July 2020.
