Jakarta,- PT Adaro Andalan Indonesia (AADI), a subsidiary of PT Adaro Energy Indonesia (ADRO), is preparing to launch an initial public offering (IPO), offering up to 778.68 million shares, representing 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 (USD 290.9 million) in fresh capital through the IPO.

The shares will be offered at a price range of Rp4,590 to Rp5,900 per share, with PT Trimegah Sekuritas (TRIM) acting as the lead underwriter.

Allocation of IPO Proceeds:

According to the company’s prospectus, the proceeds from the IPO, after deducting issuance costs, will be allocated as follows:

1. 40% will be loaned to AADI’s subsidiary, MBP, to support investments and corporate activities related to Adaro’s increased coal production.

2. Around 15% will be allocated for partial repayment of a loan agreement with AI, dated May 3, 2024.

3. The remaining funds will go toward repaying part of a principal loan from ADRO, under an agreement dated June 24, 2024.

Starting in the fiscal year 2025, AADI intends to distribute dividends of up to 45% of its consolidated net income. However, dividend payouts will depend on Board of Directors and shareholder approvals during the General Meeting of Shareholders (RUPS) and require a positive retained earnings balance.

In terms of financial performance, AADI reported a 2023 net income of USD 1.28 billion (Rp20.17 trillion), down 45 percent from USD 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 USD 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.