16 March 2023
JAKARTA, Investor.id – PT Trimegah Bangun Persada Tbk (TBP/NCKL), a subsidiary of Harita Group engaged in nickel mining and downstream, will release 12 billion shares or 18% of its shares through an initial public offering (IPO). The company offers an IPO price of IDR 1,220-1,250 per share, thus raising a maximum of IDR 15.1 trillion in total funds, the largest so far this year.
With such an offering price, TBP's market cap is around IDR 81.9-83.9 trillion, surpassing PT Vale Indonesia Tbk (INCO) IDR 61 trillion, PT Aneka Tambang Tbk (ANTM) IDR 44.5 trillion, but it is lower than PT Merdeka Copper Gold Tbk (MDKA) IDR 96 trillion, based on yesterday's closing price. TBP shares will total 67 billion when listed on the Indonesia Stock Exchange (IDX).
With an initial share offering price of IDR 1,220, NCKL's PER reaches 17.3 times, with a PBV of 2.83 times, this valuation is cheaper than INCO's PER of 19.3 times but more expensive than ANTM's 12.45 times. The PER of MDKA shares, based on RTI data, stands at 68 times.
Based on TBP's IPO Summary from Phintraco Sekuritas, Wednesday (3/15/2023), around 5.46% of the IPO proceeds will be used by the company to pay all debts to PT Harita Jayaraya, 6.05% to pay all debts to PT Dwimuria Investama Andalan, 15.13% will be used by the Company to pay all debts to Oversea-Chinese Banking Corporation Limited (OCBC) and PT Bank OCBC NISP Tbk. (NISP), 0.89% for the payment of all outstanding debts of term loan facility 1 and term loan facility 3 to NISP.
Then, around 2.12% will be used by the company as capital expenditure, 32.27% for the needs of its subsidiaries and associates through capital deposits and loans, and 38.08% for working capital.
TBP's IPO effective date is expected to be April 3, public offering April 5-10, allotment date April 10, and listing on the IDX April 12, 2023. Acting as underwriters for the Harita Nickel IPO are BNP Paribas, Citigroup, Credit Suisse, Mandiri Sekuritas, DBS Vickers, OCBC Sekuritas, and UOB Kay Hian Sekuritas.
TBP President Director Roy A. Arfandy said the IPO purpose is to support the funding of ferronickel plant capacity expansion (feni) and mixed hydroxide precipitate (MHP). This expansion is to support the government's efforts to accelerate the downstream nickel industry and the creation of an electric vehicle (EV) battery raw material ecosystem in Indonesia.
TBP, he said, hopes to achieve the required funding target, because nickel is a commodity that is needed, driven by the rapid growth of the world's EV industry, which requires batteries. In addition, TBP is already quite advanced in the industrial chain of making raw materials for EV batteries.
"TBP has successfully produced MHP and will soon produce further derivative products in the form of nickel sulfate and cobalt sulfate," he told Investor Daily, Wednesday (3/15/2023).
Largest Nickel Company
Phintraco noted that TBP is a listed nickel company with upstream and downstream capabilities with more than 10 years of operational experience in Obi Island, North Maluku. According to AME Mineral Economics Pty Ltd (AME), based on nickel production in 2022, TBP is expected to be the largest pure nickel producer in Indonesia compared to other listed nickel mining companies.
Based on TBP's official website, the company has a nickel mine covering an area of 5,523 hectares (ha) on Obi Island. Furthermore, TBP, through PT Megah Surya Pertiwi, operates four feni production lines with a capacity of 240 thousand tons per year, rotary kiln electric furnace (RKEF) technology, with a nickel content of 10-12%. Feni made by TBP uses saprolite nickel as raw material.
TBP through Halmahera Jaya Feronikel has eight feni production lines with a total capacity of 780 thousand tons a year with a nickel content of 10.5%. The raw material is still a saprolite nickel.
TBP is expanding into the first-grade nickel business for EV battery raw materials or battery grade (BG). The company holds a 45% stake in Halmahera Persada Lygend, which produces MHP.
As of November 2022, TBP's revenue reached Rp 9 trillion, up from Rp 7.7 trillion in the same period last year. Net profit rose to Rp 4.3 trillion from Rp 4.3 trillion. "The company has distributed dividends since 2012 and it is planned to distribute dividends using the 2022 financial year and will be distributed in 2023," wrote Phintraco Sekuritas.
* This article was translated from Investor.id