Hillcon Prepares IPO Amidst Nickel Trend
- 2023-02-09
- Posted by: Widyadhana Mufida
- Categories: Commodities, News
PT Hillcon Tbk. (Hillcon) will soon be holding an Initial Public Offering (IPO) at a price of IDR 1,250 – 2,000 per share. Hillcon plans to release 442.3 million shares of the company’s capital. Thus, the company has the potential to reap funds from the IPO of at least IDR 552.87 billion or a maximum of IDR 884.6 billion.
Reported by republika.co.id, The initial offering or book building period was oversubscribed by 1.3 times and was dominated by requests from long-term investors. The high demand is driven by the positive prospects for nickel mining.
“The high interest of institutional investors in Hillcon (HILL) shares shows that our business, especially nickel mining, is an industry with very bright growth prospects,” explained the CEO of PT Hillcon Tbk. Hersan Qiu in an official statement (09/02/2023).
In addition, Hillcon appointed PT Mirae Asset Sekuritas Indonesia and PT Sucor Sekuritas as underwriters for the issuance. The company also appointed PT Macquarie Sekuritas Indonesia as underwriter for HILL’s IPO.
Hersan explained that it is planned that around 55 percent of the funds will be used for working capital of PT Hillconjaya Sakti’s (HS) subsidiary. The funds come from the entire HILL IPO proceeds. The funds will be used for mining production costs, including fuel costs, overhead and maintenance of all equipment.
Meanwhile, the remaining 45 percent will be used for capital expenditure or capex. Such as for the purchase of heavy equipment such as the main fleet and supporting fleet, which will support HS operational activities in the nickel sector.
Important Date
The offering period runs from 12th January to 3rd February 2023. The estimated effective date is 15th February 2023. Followed by an estimated public offering period on 17th February 2023.
Then, the estimated date of the allotment will be carried out on 21st February 2023. Continued with the distribution of shares on 22nd February 2023. HILL shares are expected to be listed on the stock exchange on 23rd February 2023.