PT Merdeka Gold Resources soared by the 25% daily limit in its Jakarta trading debut after the miner wrapped up Indonesia’s largest initial public offering this year.
The shares climbed to 3,600 rupiah on Tuesday, compared with the 2,880 rupiah IPO price. Merdeka raised 4.66 trillion rupiah ($281 million) by selling a 10% stake in the IPO, the largest in Indonesia this year.
The deal came amid a rally in prices of the precious metal — it just hit another record — providing a tailwind for miners to raise funds. They include China’s Zijin Gold International Co., which is planning to raise $3.2 billion in what is set to be the world’s biggest listing since May.
Merdeka is a unit of listed miner PT Merdeka Copper Gold, which is backed by the likes of coal baron Garibaldi Thohir. It is developing a mine in Indonesia’s Sulawesi island and will use the IPO proceeds as working capital and loan repayment.
PT Trimegah Sekuritas Indonesia, PT Indo Premier Sekuritas Indonesia, PT Sinarmas Sekuritas and PT UOB Kay Hian Sekuritas helped arrange the IPO. (By Prima Wirayani)
