DEPOK (eNBe Indonesia) - We have seen more companies engaged in nickel, including mining contractors, entering the stock exchange in recent years.
Two nickel giants, Harita Nickel and Merdeka Battery Materials have just traded their shares on the Indonesia Stock Exchange (IDX).
Very soon, we will see more from the so-called ‘EV Ecosystem’.
One of them, PT VKTR Technology Mobility Tbk, a subsidiary of Bakrie & Brothers (BNBR), engaging in electric vehicle, is set to launch the initial public offering (IPO) for 8.75 billion shares, representing 20% of total issued and paid-up capital, priced at Rp100-130 per unit, to raise maximum proceeds of Rp1.13 trillion.
VKTR’s IPO is interesting to watch given difficulties of Bakrie-related stocks to recover from their lows due to mounts of debts.
Bakrie managed to restructure some of them, including Bumi Resources (BUMI) and Bumi Resources Minerals (BRMS), but others are yet to be out of woods.
VKTR will use 39.93% IPO fund for capital expenditure (capex), including the development of a battery-based electric motorized vehicle facility, 24.67% for the construction of a new electric motorbike production facility, 11.59% will be absorbed by PT Bakrie Autoparts, 2.49% will be used by VKTR for debt repayment to PT Tambara Tama Mandiri, and around 1.38% for repayment of debt to PT Andara Multi Sarana.
While some 44.61% of IPO fund will be used by VKTR for working capital in order to meet operational needs including general administration costs, working capital for purchasing supplies for the sale of electric buses, electric trucks and electric motorcycles which will be resold to customers as well as other expenses.
VKTR appointed PT Samuel Sekuritas Indonesia, PT Ciptadana Sekuritas Asia and, PT Trimegah Sekuritas Indonesia Tbk as the underwriters for said IPO.
The book building is set for May 26 to May 31, 2023 and the offering is set for June 12-14, 2023. Listing on the Indonesia Stock Exchange (IDX) is set for June 16, 2023.
One company Gaya Abadi Sempurna (SLIS), producer of electric bike, offered shares through initial public offering (IPO) back in October 2019 at Rp115 per share, then rallied to as high as Rp13,450 in August 2021 but then collapsed to Rp150 this week.
Partnering with BYD Auto, VKTR has developed an all-electric bus crafted for optimal performance to serve the world’s longest Bus Rapid Transit (BRT) network, Transjakarta.
In 2007, VKTR was established as PT Bakrie Steel Industries with focus in commercial vehicles & metal components distribution. In 2022, it acquired Bakrie Autoparts.
In December 2022, VKTR partnered with listed firm Gaya Abadi Sempurna (SLIS), the parent company of PT Juara Bike, a producer of electric vehicles under the Selis brand.
VKTR’s entry into the electric motorcycle industry is part of its commitment to supporting the government’s goal of achieving net zero carbon emissions by 2060.
In 2021, just in Java, there were 89,660,579 motorcycles out of a total of 119,536,624 in Indonesia. It is no wonder that motorcycles account for 69% of the total national gasoline supply.
VKTR has also partnered with EV battery startup Britishvolt to develop sustainable nickel refining capacity in Indonesia and look into building a battery plant here.
The two companies formed a joint venture called Indovolt BV VKTR, and look at other countries for potential battery plants.
VKTR has been looking for a partner to build a 15 Gigawatt hour (GWh) battery plant in Indonesia.
Indonesia is a top nickel producer and has harboured ambitions of processing its nickel laterite ore and becoming a global hub for producing and exporting EVs.
There were media reports about Bakrie’s effort to get nickel ore supply through a partnership with the company owned by Central Sulawesi provincial government, but progress is not known.***