Heaptalk, Jakarta – Pure play gold producer PT Archi Indonesia will launch the initial public offering (IPO) by releasing as much as 4,97 Billion shares or equals 20% from the shareholder value of post-money valuation.
5% of the shares are new shares. In comparison, the others 15% share that the previous shareholders have released through the vesting period mechanism agreed on the General Meeting of Shareholders, and the majority is PT. Rajawali Corpora.
On the book building period, held on May 31st, 2021, until June 9th, 2021, Archi open the stock bid ranging from Rp 750- until Rp 800- per share. Therefore, the IPO emission value is targeted to reach IDR 3.97 Trillion.
However, not all of these funds will go to Archi’s cash flow. It has to proceed as the divestment of shares that has to be paid to PT Rajawali Corpora as the seller. Later, Rajawali Corpora and Archi will share proportionally the share issuance costs associated with the IPO.
The Director of Finance Archi Indonesia, Adam Jaya Putra, said the company and its subsidiaries will use the remaining funds received after the IPO – it is around 90%. While, the other 10% will be used to fund Archi’s operational activities and its subsidiary, including PT Meares Soputan Mining and Tambang Tondano Nusajaya in the form of convertible debt.
Adam confident that even most of the fund is used to pay the bank loan, the investor will still absorb all offered shares. The good trend is shown on the first day of the book-building period, where the shares offered almost reaching the quotum.
The Vice President of Archi, Rudy Suhendra, added that the company’s current cash flow is stable. As a result, the use of IPO funds to reduce loans to third parties will make the company’s cash flow conditions stronger and continue to grow according to the company’s target plan.
Regularly Educating the Market
Rudy is inviting people to invest in Archi because of some reason. Firstly, it is registered officially on Indonesia Stock Exchange (BEI). Secondly, Archi always offers a stable gold commodity that offers a lot of value on gold investment. Thirdly, people can easily access the commodities since Archie is already available both as an offline store and online eCommerce.
“Gold is often considered as one of the safest commodities with a reliable and sustained investment value from time to time. This message that we want to maintain to be educated to the people.” Rudy said.
The key message delivered is how gold is a stable commodity. As an illustration, based on the IPO prospectus, Archi’s total liabilities as of December 2020 amounted to $505.89 million with short-term bank loans of $2.3 million, the current portion of long-term bank loans of $68.19 million, and long term bank loans are $326.26 million. In total, Archi’s total bank debt is $396.76 million, or the equivalent of Rp.5.67 trillion (assuming an exchange rate of Rp.14,300 per US dollar).
