Harita Nickel has raised Rp10tn ($660mn) from buyers together with Swiss commodities dealer Glencore and Asian sovereign wealth funds in Indonesia’s largest preliminary public providing up to now this 12 months, within the newest deal to underline Jakarta’s red-hot marketplace for public listings.
Harita Nickel, often known as Trimegah Bangun Persada regionally, is certainly one of a handful of main commodities main a document IPO pipeline this 12 months in south-east Asia’s largest economic system. The corporate priced shares at Rp1,250, on the prime finish of its vary, valuing it at $5.15bn.
Indonesia holds the world’s largest nickel reserves, a significant metallic for electrical automobiles and vitality storage, and the IPOs function a significant check of worldwide investor confidence within the nation’s try to develop an end-to-end electric vehicle supply chain.
Harita’s share providing — the retail portion of which is able to comply with in early April — was oversubscribed regardless of softening nickel costs, a world scandal over alleged missing nickel and the volatility in monetary markets following Credit score Suisse’s demise and Silicon Valley Financial institution’s collapse.
Harita’s IPO additionally comes at a time when there may be elevated scrutiny on the extent of Chinese language dominance of Indonesia’s nickel provide chain. Chinese language corporations personal or have main stakes in a lot of the nation’s mines and Harita’s companion is China’s Lygend Sources.
“We had been nervous given the timing however a lot of long-only and high quality buyers got here in,” stated one funding banker aware of the deal.
Along with Glencore and regional sovereign wealth funds, the bookbuild included a lot of worldwide funds, together with Constancy, two individuals aware of the state of affairs stated. There have been “only a few” hedge funds, they added.
Harita Nickel declined to remark.
Indonesia was already the second largest IPO market in Asia this 12 months, buoyed by commodities corporations and belying lacklustre listings in lots of developed markets. Harita’s providing surpassed Pertamina Geothermal Power, which raised $597mn
Merdeka Battery Minerals can also be set to check the market as quickly as subsequent month with an area itemizing. Amman Mineral Worldwide, Indonesia’s second-largest copper and gold miner, is planning an IPO of as much as $1bn within the subsequent three months.
Harita, a subsidiary of Indonesian conglomerate Harita Group, operates the nation’s first high-pressure acid leaching smelter on Obi island in North Maluku, producing 60,000 tonnes of contained nickel per 12 months.
A second plant subsequent 12 months will enhance capability to 120,000 tonnes. There are questions over the environmental sustainability of the HPAL course of used to extract nickel and cobalt from laterite ore. Proponents argue it’s the most environmentally pleasant smelting course of recognised by the trade.
Harita Nickel shares are set to debut in Jakarta on April 12. Credit score Suisse Group, BNP Paribas, Citigroup and Mandiri Securities are joint world co-ordinators.