This undated photo shows Archi Indonesia's ore processing facility in North Sulawesi. (Photo courtesy of Archi Indonesia)

Peter Sondakh's Gold Miner Seeks to Raise $279m in June IPO


JUNE 01, 2021

Jakarta. Archi Indonesia, one of the country's largest pure-play gold mining companies controlled by tycoon Peter Sondakh, has unveiled its plan to raise $279 million from an initial public offering this month to pay back debts and expand its business. 

Archi seeks to raise Rp 3,97 trillion ($279 million) by offering more than 4.96 billion shares, or 20 percent of its enlarged capital, at Rp 750-800 apiece in an initial public offering (IPO) scheduled for this month. 


Citigroup Sekuritas Indonesia,Credit Suisse Sekuritas Indonesia, Mandiri Sekuritas, BNI Sekuritas, and UOB Kay Hian Sekuritas served as joint global coordinators and joint bookrunners for the IPO. 

The company would later list the shares to trade at Indonesia Stock Exchange (IDX). Archi Indonesia owns 100 percent shares in Archipelago Resources, a mining operation that has been listed on the London Stock Exchange since 2013. 

“By listing our company’s shares on the IDX, Archi aims to accelerate the performance growth plan of the company," Rudy Suhendra, Archi’s vice president director, said in a statement on Monday. 

Adam Jaya Putra, Archi's chief financial officer, said 90 percent of the proceeds raised from the IPO would go toward the company's debt payment. At the same time, the rest would finance the company and its subsidiaries' operational activities and working capital.

Archi began its mining operation Toka Tindung gold mine in North Sulawesi in 2011 and has since produced a total of 1.9 million ounces of gold until 2020. By the end of December 2020, the company's had 3.9 million ounces of gold ore reserves.

The company said it still had 40,000 hectares of "largely untapped concession area," providing opportunities for further expansion. 

Archipelago Resources' subsidiaries, Meares Soputan Mining and Tambang Tondano Nusajaya, held two Contracts of Works that remain valid until 2041, with up to 10 years of possible extension.

The company made $393.3 million in sales last year, with 98 percent of the revenue came from gold sales. The revenue has increased from $347 million in 2018 at a compounded annual growth rate of 6.4 percent. Archi recorded a net profit of $123.3 million in 2020.

Archi's IPO could be one of the largest offerings at Indonesia's bourse this year, besides Cisarua Mountain Dairy, a milk producer, which also planned to raise $300 million this year. 

Asuransi Jiwa Sinarmas MSIG's IPO in 2019 was the latest one with an offering size exceeding $300 million in the country. 

 This year, IDX targets 54 companies to list their shares in the exchange with 17 companies that have done so so far.