Indonesia’s Trimegah Bangun Persada Plans Expansion In Nickel Processing After IPO
Integrated nickel mining and downstream company PT Trimegah Bangun Persada Tbk is planning to release its shares to the public through an Initial Public Offering (IPO) of as much as 12.1 billion shares on 5-10 April 2023.
This IPO share amount is equivalent to a maximum of 18 percent of the issued and paid-up capital to the public after the IPO with a nominal value of Rp 100 per share. The initial offering or book building of shares named NCKL commenced on 15-24 March 2023. According to the plan, NCKL shares will be listed on the Indonesia Stock Exchange (IDX) on 12 April 2023.
President Director of PT Trimegah Bangun Persada Tbk, Roy A. Arfandy explained, “The Company expects to raise fresh funds of around US$650 million (or around Rp 9.7 trillion) to support the completion of project construction, increase production capacity, pay off some of the Company’s loans, and additional working capital.”
“PT TBP Tbk will also allocate a maximum of 0.5% or 60.5 million shares of the IPO shares for the Company’s employee stock allocation (Employee Stock Allocation, ESA) program, where the ESA exercise price is the same as the offering price,” Roy said in a press release in March 2023.
PT Trimegah Bangun Persada Tbk appointed PT BNP Paribas Sekuritas Indonesia, PT Citigroup Sekuritas Indonesia, PT Credit Suisse Sekuritas Indonesia and PT Mandiri Sekuritas as joint lead underwriters. Meanwhile, PT UOB Kay Hian Sekuritas, PT OCBC Sekuritas Indonesia and PT DBS Vickers Sekuritas Indonesia were appointed as underwriters.
Exciting information for prospective investors, PT TBP Tbk will distribute dividends to shareholders of at least 30 percent of net profit, depending on the Company’s cash flow and investment plans, Indonesian laws and regulations, and other requirements. “The company has distributed dividends since 2012 and plans to distribute dividends using the 2022 financial year, which will be distributed in 2023,” Roy said.
PT Trimegah Bangun Persada Tbk is a well-established company with upstream and downstream capabilities in the nickel industry. This is demonstrated by its good, professional operations and prioritizing sustainable environmental management for more than 10 years in Obi Island, South Halmahera, North Maluku. The company is also confident about the future of its nickel processing business.
“PT TBP Tbk’s focus is to become an integrated nickel mining and processing company from upstream to downstream,” Roy added. The upstream sector is nickel ore mining, which produces saprolite and limonite.
While the downstream is smelting and refining nickel ore, which produces Ferronickel as the main raw material for making stainless steel and MHP (Mixed Hydroxide Precipitate) as well as its derivative products, Nickel Sulfate and Cobalt Sulfate, which are the main raw materials for making electric vehicle battery precursors.
PT Trimegah Bangun Persada Tbk currently operates two active nickel laterite mining projects covering 5,523.99 hectares in Kawasi Village, South Halmahera, North Maluku through two mining concessions. The Company also has two nickel mining prospects covering 3,660.24 hectares located on Obi Island.
Roy further added, ” PT TBP Tbk is strategically positioned to benefit from the growing need for batteries in the electric vehicle industry, in response to energy transition initiatives. This will increase demand for both nickel ore and MHP.”
Roy stated that PT TBP Tbk will continue to support the Government’s nickel downstreaming program and expects to make a valuable contribution to the creation of a rechargeable battery industry ecosystem for electric vehicles in Indonesia.
Meanwhile, looking at its financial performance, PT TBP Tbk ‘s revenue from contracts with customers reached IDR 9.04 trillion during the period January to November 2022. Up 17.32 percent compared to the same period last year. PT TBP Tbk also recorded other income of Rp 231.30 billion, an increase of 255.82 percent compared to the same period the previous year of Rp 65 billion.
The company also managed to reduce selling, general, and administrative expenses by 9.05 percent from Rp 873.45 billion to Rp 794.43 billion. PT TBP Tbk ‘s profit for the period shot up 207.95 percent from IDR 1.39 trillion as of November 2021 to IDR 4.30 trillion as of 30 November 2022. Earnings per share also rose from IDR23.16 per share to IDR 78.63.
Next, PT TBP Tbk ‘s total assets were recorded to have increased by 12.22 percent from IDR29.93 trillion as of 30 September 2022 to IDR 33.59 trillion as of November 30, 2022. Total equity rose from IDR 12.69 trillion to IDR 13.97 trillion as of 30 November 2022, with total liabilities increasing from IDR 17.24 trillion as of 30 September 2022 to IDR 19.61 trillion as of 30 November 2022.
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