JAKARTA – PT Merdeka Battery Materials Tbk (MBMA), a nickel company which is also an indirect subsidiary of PT Merdeka Copper Gold Tbk (MDKA), is preparing 11 billion new shares to be released in an initial public offering (IPO) this April.

Based on the short prospectus for MBMA's IPO released yesterday (28/3), the number of shares offered is equivalent to 10.24% of MBMA's total issued and paid-up capital after the IPO. Each share is worth IDR 100, which will then be issued at a price of IDR 780-795 per share. So, at the end of this corporate action, MBMA could collect fresh funds of IDR 8.75 trillion.

As of March 13, 2023, 54.82% of MBMA's shares were controlled by PT Merdeka Energi Nusantara (MEN), of which 99.99% shares were directly owned by MDKA. Referring to the official website of MDKA, MEN and MBMA are two subsidiaries at the forefront of the Merdeka Copper Gold nickel project.

It is reported that MBMA will allocate around 48% of the proceeds from the IPO to pay its debts to MDKA amounting to US$ 225 million and to ING Bank NV, Singapore branch, as much as US$ 75 million. Then, MBMA will also lend some of IPO proceeds to its affiliated companies, including depositing capital in PT Merdeka Industri Mineral (MIN), as well as increasing its working capital.

The initial offering period (book building) for MBMA's IPO was open from last Tuesday (28/3) to April 4, 2023. Then, the general offering period will take place on April 12-14, 2023, before the shares are distributed electronically on April 17, 2023. The share listing on IDX is scheduled to take place on April 18, 2023. (ZH/LM)