Archi Indonesia conducts IPO with an offering price of IDR 750 per share

Reporter: Sugeng Adji Soenarso | Editor: Handoyo.

KONTAN.CO.ID – JAKARTA. PT Archi Indonesia’s plan to be listed on the stock exchange is just one step away. The company will hold an initial public offering alias initial public offering (IPO) with an initial offering price of Rp 750-Rp 800 per share.

The initial offering period runs from June 22, 2021 to June 24, 2021. Through the IPO, mining companies pure-play gold (pure-play gold producer) this will release a maximum of 3.72 billion new shares or the equivalent of 15% of the issued and fully paid capital. The final offering price is set at Rp 750 per share.

If calculated, the fresh funds obtained by Ladangbaja are at least Rp 2.79 trillion from this IPO event. Archi Indonesia has also partnered with PT BNI Sekuritas, PT Citigroup Sekuritas Indonesia, PT Credit Suisse Sekuritas Indonesia, PT Mandiri Sekuritas, and PT UOB Kay Hian Sekuritas as underwriters for the issuance of securities from this corporate action.

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Following the implementation of the Initial Public Offering, in accordance with the decision of the GMS, Archi Indonesia will allocate 1.61% of the issued and fully paid capital for the share purchase option program to management and employees (MESOP). A maximum of 400 million shares, with the MESOP exercise price of at least 90% of the average closing price of the company’s shares for a period of 25 consecutive Exchange Days on the Regular Market before the listing application is made to the IDX.

As for the funds obtained in this corporate action, around 95% will be used by Archi Indonesia and/or its subsidiaries to pay off a portion of the principal of the bank loan. Then, the remaining funds will be used by the company, PT Meares Soputan Mining (MSM) and/or PT Tambang Tondano Nusajaya (TTN) to finance operational activities and working capital.

“The form of disbursement of funds to subsidiaries will be in the form of loans to related parties,” the management wrote.

For information, throughout 2020, Archi posted revenue from contracts with customers of US$ 393.3 million. That number grew 2.5% compared to 2019 of US$ 383.7 million. Meanwhile, Archi’s net profit in 2020 was US$ 123.34 million. The realization increased by 32.68% year on year, from US $ 92.96 million.