JAKARTA (TheInsiderStories) - Gold miner PT Archi Indonesia revive the initial public offering (IPO) at the Indonesia Stock Exchange and aims to raises US$1 billion in the second half (H2) of 2017. The Company plans to release about 40% of the issued shares fully paid.
Archi Indonesian Finance Director Edwin Gunawan, said the company plans to conduct IPO in the second half of next year. The company is expected can reap a US$1 billion from the IPO and if the plan goes well will be the largest IPO in terms of value in Indonesia.
The unit of Rajawali Corpora initially will go IPO on December 2014 but due the recent global macro economy and volatility of commodity prices, gold prices in particular at the time hold the the planned of offering. At that time, the company plans to sell up to 20 percent of the shares to raise $200 million.
The plan, the IPO proceeds will be used to restructure the debt of PT Bank Mandiri amounting to around $300 million and will be used under on the exploration and development of the plant.
According to Edwin, it was still searching for the underwriters and brokers to undertake this action. He added, that the company’s performance can still grow to reach 20 percent by the end of the year with revenues of $200 million and a profit of $40 million, given the increase in the price of gold recently.
This year, the company targets to produce 220,000 ounces of gold, more than tripling its output of 70,000 a year ago. Archi operates a mine in Toka Tindung under two contracts of works that will expire in 2031.
Toka Tindung mine has a 2.7 million ounces of gold reserves, or deposits that readily and economically viable to extract.
In addition, the Archi also still has gold reserves of about 2.7 million tons from three mines owned Toka Tindung project is located on the northern tip of the island of Sulawesi, approximately 35 km northeast of the regional capital of Manado and In addition Archi controls 35 percent of stakes in mine in Wonogiri project in Central Java.