Indonesia's Merdeka Battery Materials To Raise $580Million Through IPO

Merdeka Battery Materials, an Indonesian nickel company owned by Merdeka Copper Gold, plans to raise up to 8.745 trillion rupiah ($580.29 million) in an initial public offering in April, according to a prospectus released on Tuesday.

As the nickel-rich country ramps up efforts to become a major player in the electric vehicle industry, it will be the second nickel firm in Indonesia to go public this year, following PT Trimegah Bangun Persada of the Harita conglomerate group.

The company intends to sell 10.24% of its shares in the April 12-14 IPO at a price of 780 to 795 rupiah per share. According to the prospectus reviewed, an additional 1.01 percent share could be issued in the event of oversubscription, bringing the total value of the IPO to 9.619 trillion rupiah.

The IPO proceeds will be used to repay $300 million in outstanding loans, as well as for capital expenditure and working capital.

The proceeds will also be used to build the first phase of a 60,000-tonne-per-year high pressure acid leach (HPAL) plant. Earlier this month the company signed an agreement for the plant with Ningbo Brunp Contemporary Amperex Co.Ltd.