Archi plans IPO next year

By Thomas R. Sembiring

Gold mining firm PT Archipelago Indonesia (Archi) plans to launch an initial public offering (IPO) in the first quarter of next year once commodity price begins to stabilize.

The company last year cancelled a planned December IPO on weak response from investors during book building process.

(The IPO will be launched) in early first quarter of next year,? said Darjoto Setiawan, Managing Director of Rajawali Corpora, the parent company of Archi. Rajawali Corpora is part of the diversified Rajawali Group controlled by tycoon Peter Sondakh.

Darjoto added that Rajawali aims to maintain majority ownership in Archi.

As previously reported, Archi said in its prospectus that it wanted to raise around US$350 million from the sale of 43 percent shares via an IPO, which will be used to repay debt and finance acquisition.

Archi currently has 100 percent shares in two producing gold mine in North Sulawesi, namely PT Meares Soputan Mining and PT Tambang Tondano Nusajaya. In 2013, both mines produced 152,000 ounces of gold equivalent in 2013.

The company also has a 35 percent stake in ASX-listed mining firm Augur Resources Limited, which owns a 45 percent stake in gold and copper project in Wonogiri, Central Java.

Archi plans to use part of the IPO proceeds to acquire PT Smart Mining Resources (SMR), which controls 55 percent of the Wonogiri project. SMR is owned by Peter. When the acquisition is completed, Archi will effectively control 70 percent stake in the gold and copper project.

Editing by Reiner Simanjuntak