MDKA – Nickel subsidiary aims for up to IDR8.74 tn from IPO

MDKA's subsidiary, Merdeka Battery Minerals (MBM) is offering 11 mn shares in an initial public offering at a price per share ranging from IDR780 - IDR795. That way the company can gain funds of IDR8.58 tn - IDR8.74 tn from this IPO process. The use of proceeds from this IPO itself is planned to be 48% used to pay the company's debt, 21% will be used as loans to subsidiaries, 1.5% will be used as the company's working capital and the rest will be used for capital investment in subsidiaries. Merdeka Battery Minerals (MBE) itself is a holding company for businesses engaged in nickel and mineral mining. There are several assets owned by MBE such as the Sulawesi mine and 2 nickel smelters that have been operating permanently. MBE also acquired the smelter owned by Zhao Hui Nickel, this acquisition is projected to increase the company's production from 38,000 tonne per annum to 88,000 tonne per annum. (Source: Bisnis Indonesia)