JAKARTA - PT Hillcon Tbk (HILL) has allocated capital expenditure (capex) of IDR 248.79 billion, which will be used to support the operations of its subsidiary, PT Hillconjaya Sakti (HS).

In HILL’s IPO on Wednesday (1/3), Hersan Qiu, President Director of HILL, said that 45% of the capital expenditure budget comes from the proceeds from the initial public offering (IPO) and the other 55% is for working capital. "HS operational activities are in the form of heavy equipment, namely, the main fleet and supporting fleet," he said.

On the other hand, the working capital will be used to finance mining production, including fuel costs, overhead and maintenance of heavy equipment.

HILL offered 442.3 million shares at IDR 1,250 per share since last week (23-27/2). During that period, demand for HILL shares exceeded five times with more than 9,000 investors.

"We are optimistic that we can become a nickel mining service company and contribute to the development of the nickel industry in Indonesia," he said. (LK/LM)