PT Archi launches up to $379m Jakarta float

Indonesia’s gold mining operator PT Archi began roadshows, this week, for its upcoming initial public offer (IPO) that aims to raise between Rp3.5 trillion to Rp 4.6 trillion ($295 million to $379) million.

PT Archi is part of the Indonesian conglomerate Rajawali Corp, controlled by tycoon Peter Sondakh. In addition to mining, the group also has interests in hotels, agriculture and transportation.

The roadshows will extend till November 25. The company plans to do a domestic offer on December 8 and 9, followed by allocation on December 11. It is expected to begin trading on the Jakarta exchange from December 15, this year.

PT Archi will be offering 1.879 million shares, priced between Rp1895 and Rp2445 (per share). At the upper price range of this band, the firm is valued at  $729 million. This is significantly higher than the $533 million valuation it received, while listing (briefly) on London’s secondary AIM market, as Archipelago Resources, in September 2013.

“The shares that we are offering to the public are equal to 40.4% of the issued and the paid up share capital after the public offering, with a price range of Rp 1,895 to Rp 2,445 per share,” Archi finance director Edwin Gunawan said, according to a report in its local media, The Jakarta Post.

The company will use $216.2 million of the proceeds to pay its debt, due at year-end, to the London-based gold miner Archipelago Resources PLC. $35.9 million will be used to acquire a 99.98% stake in PT Smart Mining Resources and the remaining $67.6 million will be used as working capital, the report added.

CIMB Securities, Danareksa, Mandiri Securities and Valbury Asia Securities are the underwriters for the offering and its global coordinators are Bank of America Merrill Lynch and Standard Chartered.

The PT Archi IPO is coming out during a challenging time. Domestic demand for recent IPOs has been poor in Indonesia. Two recent listings – taxi operator Blue Bird and Internet service provider Link Net – had to cut down their float size significantly.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.