JAKARTA. PT Archi Indonesia Tbk., a gold mining company, would begin the Initial Public Offering (IPO) in Indonesia Stock Exchange. The total shares to be issued in this IPO amounts to 4.97 billion units of shares, equivalent to 20% of its issued and paid-up capital.
Rudy Suhendra, the Vice Director of Archi Indonesia, claimed that the fund gathered from this IPO would accelerate the company’s business development plan, particularly now, when the gold prospects are getting better.
“From 2014 until today, the company has doubled its resources, allowing us to deliver even more. In 2021, the gold price is appropriate in supporting the IPO,” Suhendra further explained in the public expose earlier today (31/5).
Meanwhile, Adam Jaya Putra, the Financial Director of Archi, revealed that most of the IPO funds would be used to pay off the company’s debt to the third party. There would be 90% of it to be allotted to debt payment, while the remaining 10% would be stored as the additional working capital for the company.
According to idnfinancials.com curated data, Archi has produced gold over 200 thousand ounces, equivalent to 6.2 tonnes of gold per year. The company is currently in possession of mining concessions of 40 thousand Ha. However, the explored parts only reached 10% of its total area.
Regarding its performance, Archi reported total revenue of USD 393.3 million in the fiscal year 2020, while its net profit in Q1 2021 amounts to USD 123.3 million.
Prior to the IPO, 99% of Archi is controlled by PT Rajawali Corpora under Rajawali Group. The said group is owned by Peter Sondakh, the tycoon listed as one of the Forbes’ richest people in Indonesia in 2019. (KR/ZH)