Merdeka Copper Gold to raise Rp 1.8t from June IPO

PT Merdeka Copper Gold, a mining subsidiary of investment firm Saratoga Investama Sedaya, aims to raise up to Rp 1.8 trillion (US$136 million) in proceeds from an initial public offering (IPO) next month, reports said on Wednesday.

The company plans to sell 874 million new shares at a price between Rp 1,800 and Rp 2,100 per share. It will offer the shares from June 4 to 8 with Indo Premier Securities and Bahana Securities serving as underwriters.

The miner, which operates a gold and copper concession in Banyuwangi, East Java, will be offering shares to the public despite still being at the development stage of business. It aims to begun production by next year with hopes to book a profit in the following year.

Merdeka President Director Adi Adriansyah Sjoekri told a press conference Tuesday the company plans to allocate funds from the offering towards its subsidiary, Bumi Suksesindo, to finance the company?s capital expenditure and working capital, as well as pay off its debt. (*)