PT Adaro Andalan Indonesia (AADI), a subsidiary of mining company PT Adaro Energy Indonesia (ADRO), is set to launch an initial public offering (IPO), offering up to 778.68 million shares, equivalent to 10 percent of its post-IPO issued and paid-up capital.
AADI, controlled by Garibaldi “Boy” Thohir, aims to raise a maximum of Rp4.59 trillion (US$290.9 million) in fresh capital through the IPO.
The offering price for AADI’s shares is set between Rp4,590 and Rp5,900 per share. PT Trimegah Sekuritas (TRIM) is acting as the lead underwriter for this offering.
According to the company’s prospectus, the proceeds from the IPO, after deducting issuance costs, will be allocated as follows:
1. Approximately 40 percent will be provided as a loan to AADI’s subsidiary, MBP, to support its investments and corporate activities aligned with Adaro’s increased coal production;
2. Around 15 percent will go toward repaying part of a loan agreement with AI, dated May 3, 2024;
3. The remaining funds will be used to repay part of a principal loan from ADRO under an agreement from June 24, 2024.
In addition, starting in the fiscal year 2025, AADI plans a dividend payout ratio of up to 45 percent of its consolidated net income.
Dividend distributions will require the approval of the Board of Directors and the General Meeting of Shareholders (RUPS) and depend on AADI maintaining a positive retained earnings balance.
In terms of financial performance, AADI reported a 2023 net income of US$1.28 billion (Rp20.17 trillion), down 45 percent from US$2.34 billion (Rpp36.88 trillion) the previous year.
However, in the first half of 2024, the company’s net income rose by 15 percent year-over-year to US$922.76 million (Rp14.5 trillion), reflecting solid growth compared to the same period in 2023.
AADI’s IPO represents a strategic move to bolster its capital structure, support its subsidiaries, and position itself for future growth in Indonesia’s energy sector.
