JAKARTA. PT Adaro Andalan Indonesia Tbk (AADI), a subsidiary of PT Adaro Energy Indonesia Tbk (ADRO) that will make its debut on Indonesia Stock Exchange (IDX), reveals plans of IPO proceeds’ utilisation.

As informed by IDNFinancials before, AADI plans to issue 778.68 million shares in IPO. The potential fresh funds raised in this corporate action reaches IDR 4.59 trillion.

The management of AADI mentioned that later, approximately 40% of IPO proceeds will be allocated as a loan to its subsidiary, PT Maritim Barito Perkasa (MBP). MBP is known to be the coal transportation business line under Adaro Group through AADI.

As of 2023, AADI owns 54 units of barges, 60 tugboats, and 3 propeller vessels. Total coal transported by MBP also reportedly reached 59.1 million tons throughout 2023.

“The purpose of loan is for investment and corporate general purposes, as MBP’s operational activities increase,” said the management of AADI in the IPO prospectus.

Then, another 15% of IPO proceeds will be used to repay some of the loan of AADI to PT Adaro Indonesia (AI). The remaining amount will then be allocated to pay back another loan to ADRO.

For the record, ADRO’s public offering will take place from November 29 to December 3, 2024, while the listing follows on December 5, 2024. (KR/ZH)