IPO Highlight Adaro Andalan Indonesia
KBVS Update
Friday, 15 November 2024
AADI - 2024's Hot IPO: Attractive Valuation & Strong Growth Ahead
Good morning! Here’s attached the IPO report to give you a closer look at AADI's offering:
■ PT Adaro Andalan Indonesia (AADI), ADRO’s thermal coal subsidiary, plans an IPO of 778.7 mn new shares (10% of shares) at IDR4,590–IDR5,900/share, aiming to raise up to IDR4.59 tn. Funds will support a loan to PT Maritim Barito Perkasa (40%), debt repayment to PT Adaro Indonesia (15%), and partial repayment to ADRO.
■ The IPO offer period is expected from 29 Nov–3 Dec 2024, with BEI listing on 5 Dec 2024. Alongside the IPO, AADI will conduct a simultaneous public offering by shareholders (PUPS).
■ PT Adaro Strategic Investments (ASI) and Garibaldi Thohir, as current controllers, will retain control for at least one year post-IPO.
■ ADRO plans to offer up to 7,008 mn AADI shares (PUPS) to ADRO shareholders one day after AADI’s IDX listing, pending PUPS approval. We estimate ADRO shareholders will have the right to subscribe to AAI shares, with a share ratio of 4.4 ADRO shares to 1 AAI share.
■ Starting FY25, AADI plans a DPR of up to 45%.
■ At a bookbuilding price, AADI's valuation range of 0.7x-0.9x FY24F EV/EBITDA is at a discount (~50%) compared to its peers in the coal industry.
Regards,
Laurencia Hiemas - KBVS Research team