Indonesia: Trinitan Metals, Nusantara Almazia, Bhakti Agung Line Up IPO

In IPO market in Indonesia is hotting up with action as a slew of companies are lining up their public issues.

While property developer Nusantara Almazia is looking to make a market debut by the of the month, Trinitan Metals and Minerals is all set to launch its IPO on October 4, according to local media reports. The companies are looking to raise Rp 101.53 billion ($7.15 million) and Rp 100 billion ($7 million), respectively.

These are not the only ones. Another property developer Bhakti Agung Propertindo is also looking to tap the IPO route to raise as much as Rp 355.5 billion ($25 million) by the middle of this month, according to a filing on the Indonesia Central Securities Depository (KSEI), the country’s securities depository and settlement institution. Recently, Indonesia’s steel producer Gunung Raja Paksi, too, was in news when it announced its plans to raise $78m through the IPO route.

Companies are increasingly tapping the Indonesian bourse after adopting a ‘wait and watch’ policy during the first half of this year.

According to data provided by Indonesian Stock Exchange (IDX) listing director I Gede Nyoman Yetna earlier this year, as many as 21 companies have lined up their IPOs this year, putting all volatility and political headwinds behind with elections coming to an end. These include prominent names such as real estate and property firm Menteng Heritage Realty, cable TV network MNC Vision Networks, and telco service provider Jasnita Telekomindo.

Immediate ‘Issues’

Going forward, all eyes will be on Trinitan Metals and Minerals and the two property developers that are looking to launch their public issues rather immediately. The metal processing producer is set to offer 333.3 million shares, which equivalent to 25 per cent of its enlarged capital and use the IPO proceeds for capital expenditure, besides purchasing new machines and utilities to support its tin, antimony, and silver production.

Founded in 2009, Trinitan Metals and Minerals processes raw materials and has a production capacity up to 37,000 metric tons per year.

Bhakti Agung Propertindo, on its part, is planning to use 80 per cent of its corpus to build new apartment project while the remaining amount will go towards repaying its debt to state-controlled lender Bank Tabungan Negara (BTN). The company is looking to raise the entire capital from its IPO in lieu of 30 per cent stake.

Property developer Nusantara Almazia will divest 21 per cent from the company’s enlarged capital and will use the capital to acquire 68 per cent stake of local property developer Serena Inti Sejati. Nusantara Almazia will also use the proceeds for working capital, and to repay its debt.