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Nickel miner AKP set to go public, prepares for acquisition by Korean firm
Following the initial public offering (IPO), the miner's two largest investors will sell a 60 percent stake in the company to a subsidiary of South Korea-based LX International.
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A worker checks a pile of nickel pig iron (NPI) on Oct. 18 that was produced in the Morowali industrial park in Bahodopi district, Morowali regency, Central Sulawesi. The development of the industrial complex was slated for full completion in 2019, when it was expected to reach an annual capacity of producing 2 million tons of NPI and 3 million tons of stainless steel slab.
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ickel miner Adhi Kartiko Pratama (AKP) has initiated the initial public offering (IPO) process, and the company expects to be listed on Indonesia Stock Exchange (IDX) on Jan. 9, under the ticker NICE.
The company plans to sell 20 percent of shares currently owned by its existing investors, Sungai Mas Minerals (SMM) and Inti Mega Ventura (IMV), at a price ranging between Rp 430 and Rp 530 apiece.
The mining company expects it could generate up to Rp 644.7 billion (US$41.6 million) in proceeds for the two shareholders, which together hold 98.59 percent of the company’s shares.
To attract investors from the public market, AKP plans to distribute cash dividends next year with the amount set at a minimum 25 percent of the firm's net profits for the 2023 financial year.
Furthermore, both SMM and IMV will sell a 60 percent stake in the company to PT Energy Battery Indonesia (EBI), a subsidiary of South Korea-based LX International.
In November, LX expressed its intention to acquire AKP for $101.3 million and plans to complete the transaction by February 2024. The company also aims to increase nickel production capacity from 1.5 million tonnes to 3.7 million tonnes by 2028.
LX stated that the firm would continue to secure nickel as it shifted its major natural resource business from coal to minerals related to electric vehicle (EV) batteries.
