JAKARTA, March 15 (Reuters) – Indonesian nickel company PT Trimegah Bangun Persada (TBP), a unit of Harita conglomerate, is raising up to $647 million through an initial public offering (IPO), according to a term sheet seen by Reuters. Wednesday.
The IPO would be Southeast Asia’s largest IPO so far this year, overtaking the listing of Indonesia’s state-backed Pertamina Geothermal Energy (PGEO.JK), which raised 9.06 trillion rupiah ($590 million) last month.
Trimegah Bangun Persada, also known as Harita Nickel, is offering up to 8.1 billion shares at 1,220 to 1,250 rupiah each, according to the term sheet.
At the top end, Harita Nickel would have a market value of $5.1 billion.
The company is taking IPO orders starting Wednesday and will price the offering on March 24, the paper reveals. Harita Nickel will debut on the Indonesian Stock Exchange on April 12th.
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It is planned to use the proceeds from the IPO for investments, repayment of outstanding loans and working capital, among other things.
Earlier Wednesday, the company’s prospectus showed the company would raise up to 15.12 trillion rupiah ($982 million).
Bankers said the expanded size in the prospectus was based on the company’s original IPO filing, but the actual deal, launched Wednesday, was expected to raise as much as $647 million.
The Company mines nickel and operates processing facilities on Obi Island in the eastern Maluku region of Indonesia.
Through its partnership with Chinese company Lygend Resources, TBP operates Indonesia’s first High Pressure Acid Leach (HPAL) plant, which extracts Mixed Hydroxide Precipitate (MHP), the nickel material used in electric vehicle batteries.
BNP Paribas SA, Citigroup Inc., Credit Suisse Group AG and PT Mandiri Securities are joint global coordinators of the IPO.
($1 = 15,380,0000 rupiah)
Reporting by Fransiska Nagoy and Stanley Widianto in Jakarta and Yantoultra Ngui in Singapore; Edited by Edmund Klamann, Ed Davies
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