ADRO - AADI 2024's hot IPO: Attractive valuation & strong growth ahead

AADI - 2024's hot IPO: Attractive valuation & strong growth ahead Adaro Andalan Indonesia (AADI), a thermal coal subsidiary of ADRO, is launching its IPO, offering 778.7 mn new shares (10% of shares) at IDR4,590–IDR5,900 each to raise up to IDR4.59 tn. Funds will support loans, debt repayment, and a partial repayment to ADRO. The IPO runs from 29 Nov to 3 Dec 2024, with listing on 5 Dec. AADI, with seven thermal coal assets and 4,102 mn tons in resources, produced 32.74 mn tons in 1H24. Starting FY25, it plans a DPR of up to 45%. Its FY24F EV/EBITDA is discounted (~50%) to industry peers at 0.7x–0.9x. (Source : Company, KBVS Research)