Port coal loading and unloading
Shares of Adaro Andalan Indonesia, a coal mining company backed by Indonesian billionaire Garibaldi Thohir, surged 20% in their first trade on the Jakarta Stock Exchange as demand for Indonesian IPOs picked up.
The company, which supplies thermal coal used in power generation, raised 4.3 trillion rupees ($271 million) through the IPO by selling 778.7 million shares at 5,550 rupees, which was close to the lower end of its recommended price of 5,500 rupees per share. to Rs 5,900).
Speaking at the listing ceremony on Thursday morning, Adaro Andalan President Julius Aslan said: “The prospects for the thermal coal business remain attractive as coal demand remains quite high, especially supported by economic growth in Asia. Trading was suspended after daily fluctuation limits and last traded at 6,650 rupees.
The Adaro Andalan IPO is Indonesia's largest IPO since gold and copper miner Amman Mineral Internasional debuted in July 2023. There was an initial issue of shares at some point, raising Rs 4.7 trillion.
Adaro Andalan holds the thermal coal assets of Alamtri Resources Indonesia (formerly known as Adaro Energy Indonesia). In September, Alamtri announced it would separate the funds to obtain additional funding sources.
While the majority of the group's revenue comes from coal, it expects more than half of its revenue to come from non-coal operations by 2030 as it expands renewable energy projects and reduces its reliance on coal.
Alamtri is developing Kaltara Industrial Park, a 16,000-hectare green industrial complex in North Kalimantan. The park will be powered by a 1,375-megawatt hydroelectric plant built by the company at an estimated cost of $2.6 billion. The industrial facility will also house an aluminum smelter with an initial capacity of 500,000 tons per year (expandable to 2 million tons), which is expected to be completed next year.
On Saturday, Alamtri said it planned to pay dividends of up to $2.6 billion to shareholders to encourage them to support the Adaro Andalan IPO. This sent the company's share price soaring to a record high of Rs 4,040 per share on November 5.
Alamtri CEO Thohir's net worth is estimated at US$3.3 billion, ranking him 17th on a list of Indonesia's 50 richest people released in December 2023. Thohir also owns a stake in Merdeka Battery Materials, a raw material supplier that manufactures car batteries for electric vehicles.
Additional reporting by Ardian Wibisono.
