Saturday , 23 May 2015
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IPO Watch: Indonesia’s Merdeka Copper Gold launches IPO

JAKARTA (rambuenergy.com) – PT Merdeka Copper Gold, a gold and copper exploration company, launched an initial public offering this week (May 12) in a price range at 1,800 to 2,100 rupiah a share, aiming to raise up to Rp 1.84 trillion.

The company will offer 874.36 million shares or 21.7 percent of its enlarged capital. The offering date is set for June 4 to 8, followed by listing on the Indonesian Stock Exchange on June 12.

The IPO plan was delayed from initial plan of the third quarter of 2014. 

Acting as underwriters of the IPO are PT Indo Premier Securities and PT Bahana Securities.

In a published prospectus, the company said it will use the entire IPO proceeds to its subsidiary PT Bumi Suksesindo (BSI) to expand its business. Merdeka Copper Gold owns 99.8 percent shares in BSI.

In return, BSI will allocate 50 percent of the IPO proceeds to build processing facilities as well as other facilities; 40 percent to repay BSI’s loans to Bank DBS Indonesia and United Overseas Bank Ltd and the remaining 10 percent for strengthening working capital such as paying salaries and administrative related costs.

In conjunction with the IPO plan, Merdeka Gold Copper also issues mandatory convertible bonds worth US$70 million, which is issued to MCB Emperor and MCB Willis based on Master Settlement Deed dated February 17,2014, with total issued shares for 39.46 million units.

Shareholders Prior to IPO & bond conversion (MCB) (%) After IPO & bond conversion (MCB) (%)
PT Trimitra Karya Jaya 25.7 14.6
PT Mitra Daya Mustika 25.7 14.6
Maya Miranda Ambarsari 14.2 8.2
Garibaldi Thohir 10.6 6.2
Banyuwangi Regency 10.0 5.7
PT Srivijaya Kapital 7.1 4.0
Andreas Reza Nazaruddin 3.5 2.0
Sakti Wahyu Trenggono 3.2 1.8
MCB Willis holder - 8.1
MCB Emperor Holder - 11.4
Opsi Emperor Holder - 2.0
Public - 21.7

 

The ultimate key shareholders of PT Merdeka Gold Copper Tbk are PT Saratoga Investama Sedaya (25.7 percent), PT Provident Capital Indonesia (32.8 percent) and businessman Garibaldi Thohir (10.6 percent).

As of end 2014, the company has total liabilities of US$106.58 million and total assets ofUS$126.33 million. Its equity stood at US420.16 million.

In 2014, the company posted comprehensive net loss of US$5.08 million compared to US$1.0 million in previous year.

Merdeka Gold copper, previously known as PT Merdeka Serasi Jaya, was established on September 5, 2012. Currently, it operates in gold, silver, copper and other mineral business through three subsidiaries, namely PT BSI, PT Damai Suksesindo (DSI) and PT Cinta Bumi Suksesindo.

BSI has secured mining permit (IUP for operation) for 20 years and can be extended twice, with a period of 10 years in every extension. PT DSI holds exploration permit (IUP for exploration) for 6 years from Jan 25, 2010 until Jan 20, 2016. BSI’s IPU covers 4,998 hectares, while DSI’s IPU covers an area of 6,623 hectares in Banyuwangi, both located in the southern coast of East Java.

In the short term, Merdeka Gold Copper, through BSI, will develop the prospect area of Tumpangpitu, within Tujuh Bukit Project area. Merdeka Gold Copper also plans to upgrade the DSI IUP to IUP production, pending on the approval of the government. The Tujuh Bukit project zone is estimated to contain at least 1.6 million ounces of gold and 60 million ounces of silver.

The company said the Tujuh Bukit Project is expected to be completed in the next 20 months. It hopes to kick off gold and copper maiden production in 2016 with initial target of 3 million tons of ores per annum, which will translated into 90,000 oz of gold and 1,000,000 oz of copper.

The Tujuh Bukit area is believed to be one of the world’s best undeveloped gold and copper sites. The area was first developed by Australian Intrepid Mines Ltd in cooperation with its Indonesian partner Indo Multi Niaga (IMN), which holds the license to mine the concession area. However, Intrepid was then locked out of the project after IMN transferred the ownership of Intrepid’s 80 percent shareholding to Bumi Sukses Indo (BSI), triggering a legal battle over ownership of the project.

The case was eventually settled in which Intrepid Mines received a 22 percent stake in a new holding company (Merdeka Serasi Jaya), which was then sold to Singapore-based Kendall Court for US$80 million.

PT Indopremier Securities director Moleonoto told reporters early this week that he was optimistic the company’s shares would attract investors despite a slump in commodity prices, as the company holds large reserves of gold and copper.

Following is the composition of board of commissioners and board of directors:

BOC:

-       President Commissioner    : A.M. Hendropriyono

-       Deputy President Commissioner: Edwin Soeryadjaya

-       Commissioner          : Garibaldi Thohir

-       Independent Commissioner: Dr. Annuba Arifa Ch. R.

-       Independent Commissioner : Richard Bruce Ness

BOD:

-       President Director : Adriansyah Sjoekri

-       Deputy President Director : Gavin Arnold Caudie

-       Director : Hardi wijaya Liong

-       Director : Michael William Soeryadjaya

-       Director : Rony N. Hendropriyono

-       Independent Director : Chrisanthus Supriyo

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