Indonesian copper miner Amman plans 12.94 trillion rupiah IPO by July

INDONESIAN copper miner Amman Mineral Internasional aims to raise up to 12.94 trillion rupiah (S$1.17 billion) in an initial public offering (IPO) scheduled for Jun 28 to Jul 3, according to the company’s prospectus published on Wednesday (May 31).

Book building is set to start on Wednesday with an offering price in a range of 1,650 rupiah to 1,775 rupiah per share.

Amman Mineral will use the IPO proceeds to pay off some debt and fund several projects, including completing a copper smelter it is building in Sumbawa island, the company prospectus said.

The smelter, which has input capacity of 900,000 tonnes of copper concentrate to produce 220,000 tonnes of copper cathode annually, will cost the company US$983 million in total, company and government data showed.

The Indonesian government in April exempted Amman until May 2024 from a planned June ban on raw mineral exports, to give the firm a revenue stream to complete the smelter project, which was half-finished as of January.

A unit of Amman Mineral, part of Indonesian energy group Medco Energi Internasional, operates the Batu Hijau mine in the West Nusa Tenggara province.

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Indonesia to allow Freeport, Amman Mineral to ship copper concentrate until 2024

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Amman Mineral Internasional acquired the Batu Hijau mine from US miner Newmont Mining and Japan’s Sumitomo and its partners in 2016.

Indonesia’s IPO market has raised US$1.58 billion as of April this year, second only to China in the Asia-Pacific region excluding Japan and ahead of traditional powerhouse Hong Kong, according to Refinitiv data. REUTERS