Indonesian metal and mining firm PT Trimegah Bangun Persada is set to kick off its initial public offering as soon as Wednesday and is looking to raise about $650 million, according to people familiar with the matter.
The company, also known as Harita Nickel, plans to offer shares at 1,220 to 1,250 rupiah each, said the people, who asked not to be identified as the information is private. At the top end of the price range, Harita Nickel will be valued at about $5.2 billion, the people said. It will likely start taking investor orders as soon as Wednesday, they added.
At $650 million, Harita Nickel’s IPO would surpass PT Pertamina Geothermal Energy as Indonesia’s biggest this year, according to data compiled by Bloomberg. State-backed Pertamina Geothermal raised about $604 million in its first-time share sale in February.
Deliberations are ongoing and details of Harita Nickel’s IPO could still change, the people said. A representative for the company declined to comment.
The nickel industry sits at the heart of President Joko Widodo’s vision of developing an end-to-end electric-vehicle supply chain onshore. Carmakers including Hyundai Motor Co. and Mitsubishi Motors Corp are setting up local EV plants, seeking to ensure continued supply of nickel for their batteries as Indonesia bans ore exports.
Harita operates the country’s first high-pressure acid leaching smelter on Obi island in North Maluku, according to its website. The HPAL process turns the local low-grade ore into mixed hydroxide precipitate — a form of nickel that can be further processed to make batteries. Its HPAL facility has a production capacity of 55,000 tons a year. Next year, a new plant would more than double its output to 120,000 tons.
It is partnering with China’s Lygend Resources & Technology Co. to complete facilities to process mixed hydroxide precipitate into nickel and cobalt sulfate, which are more refined versions of the metals. Harita also produces ferronickel by operating several electric-furnace smelters.
