JAKARTA – PT PAM Mineral Tbk (NICL) hit oversubscription up to 48 times during its initial public offering (IPO) of 2 billion shares held throughout last week (2-5/7). From this corporate action, the company aims to score IDR 200 billion, which would be directed to business expansion.
In the initial stock recording in Indonesia Stock Exchange (IDX) on Friday (9/7), Rudy Tjakana, President Director of PAM Mineral, claims that the measure taken by the company to enter the market is intended to raise funding capacity and improve administration. “The mineral mining business has a more promising prospect,” Tjakana adds.
According to Tjakana, nickel supply is currently tight due to the high demand from the electric vehicle business. The market share of electric vehicles would, in fact, increase to 10% in 2015 compared to 2019. It would continue its positive trend to 28% in 2025, even peaking at 58% in 2040.
It is mentioned that IDR 72 billion, or 30% of IPO yields, would be channelled to expand NICL and its subsidiaries’ businesses. They include exploration for additional nickel ore reserves in the working area of BCL, Raisa, Tiara, and Syahrini Blocks. It covers 51 hectare area in Morowali, Central Sulawesi. The remaining 70% would be used in working capital, contractors’ payment, shipping, and other operations.
Prior to IPO, NICL’s shares were divided into PT Pam Metalindo of 60% PT Artha Perdana Investama of 40%. NICL then appointed PT Danatama Makmur Sekuritas as the underwriter in this corporate action. (LK/ZH)