JAKARTA – PT Sinar Terang Mandiri Tbk (MINE) will offer 612.67 million shares or 15% of the company's issued and paid-up capital post-IPO.

With an initial offering price ranging from IDR 200-216 per share, MINE is projected to raise a maximum of IDR 132.34 billion from this corporate action.

Based on the initial prospectus, 48% of the IPO proceeds, amounting to IDR 63.21 billion, will be allocated for capital expenditure to purchase 6 dump trucks, 3 excavators, and 1 bulldozer to enhance production at PT Weda Bay Nickel (WBN).

Furthermore, 11% will be used for purchasing land and buildings owned by MINE’s President Commissioner and Controller, while the remaining funds will be allocated to support WBN projects.

MINE is known to provide mining services for WBN, a nickel mine owned by PT Aneka Tambang Tbk (ANTM), Tsingshan, and Eramet, which operates in Weda Bay, Central Halmahera, North Maluku.

In 2019, MINE secured a construction contract for WBN's hauling road, and in 2020 it expanded its role as a mining service provider for WBN.

Besides WBN, Sinar Terang Mandiri also provides mining services for PT Hengjaya Mineralindo (HNI), another arm of Tsingshan, in partnership with Nickel Industry from Australia, which operates in Morowali, Central Sulawesi.

In terms of financial performance, MINE has demonstrated strong results, with revenue increasing 40.48% year-on-year (yoy) to IDR 1.36 trillion as of August 2024, while net profit soared 278.30% yoy to IDR 225.18 billion.

According to its prospectus, MINE promises to distribute dividends of up to 30% of positive retained earnings starting from the 2025 fiscal year, meaning no dividends will be distributed this year (for the 2024 fiscal year).

It should be noted that the company has just commenced its initial share offering (bookbuilding), which will conclude on Thursday, February 27, 2025. The public offering is projected for March 4-6, followed by listing on the Indonesia Stock Exchange (IDX) on March 10, 2025. (ZH)