Indonesian entrepreneur Garibaldi Thohir is ready to increase his riches after divesting 5.31 billion shares in mineral mining business PT Merdeka Battery Materials Tbk. This smart move highlights Boy Thohir’s financial expertise and importance in Indonesia’s dynamic corporate sector.
Garibaldi Thohir, Share Divestment Analysis
On September 13, 2023, the Indonesian Central Securities Depository (KSEI) reported that Boy Thohir owned 7.55% of MBMA shares, down from 8.14 billion. He owns 6.64 billion MBMA shares, 6.16% of the total.
Boy Thohir’s ownership decline occurred during September. Boy Thohir held 11.96 billion MBMA shares and owned 11.08% of the company in the August 31, 2023 monthly security holder registration report. The IPO prospectus described Boy as possessing 11.96 billion founding shares. Over the previous two weeks, Boy sold 5.31 billion shares.
Unfortunately, the divestiture fee is unknown. However, MBMA equities traded between Rp810 and Rp890 per share in September, therefore Boy’s selling created a minimum gain of Rp4.30 trillion.
Boy Thohir made Rp398.40 billion from his 6.64 billion retained shares. This profit came from the difference between MBMA’s IPO share price of Rp795 and the market closing price on Thursday, September 14, 2023, which was Rp855.
Garibaldi Thohir, MBMA’s Public Listing Journey
On Tuesday, April 18, 2023, MBMA joined the Indonesia Stock Exchange (BEI). The business issued 11,549,999,900 new shares from its portfolio in an IPO. This financing strategy generated Rp9.2 trillion for MBMA.
Investor interest in the allocation component of the IPO exceeded expectations. Investor demand was so high that the offering was oversubscribed 19.9 times. Therefore, MBMA issued 549,999,900 more shares to accommodate the high demand.
MBMA President Director Devin Ridwan thanked institutional investors worldwide for the successful IPO and their support. This business milestone was crucial to MBMA’s strategy as a vertically integrated worldwide participant in the strategic mineral value chain and electric car battery raw material manufacturing.
Garibaldi Thohir, Use of IPO Proceeds
The distribution of IPO money by MBMA is outlined. These funding will build nickel processing projects, including a Phase I High-Pressure Acid Leach (HPAL) plant. This cutting-edge plant can process 60,000 tonnes annually. Its main goal is to create electric car battery basic materials.
The IPO’s leftover money will boost MBMA’s subsidiaries’ operating capital. PT Sulawesi Cahaya Mineral (SCM), a nickel mining business, has one of the world’s greatest nickel deposits. SCM’s reserves surpass 1.1 billion dry metric tonnes, including 13.8 million tonnes of nickel at 1.22% Ni and 1.0 million tonnes of cobalt at 0.08% Co.
Infusion of Strategic Capital
Last month, MBMA invested $200 million (Rp3.06 trillion) in PT Merdeka Tsingshan Indonesia as a strategic move. This investment funds the Acid, Iron & Metal (AIM) project in Morowali, Central Sulawesi.
MTI and MBMA signed a debt and receivables credit agreement on August 15, 2023. Under this deal, MBMA, as a creditor and MTI’s controlling corporation, pledged to $200 million in financing with SOFR and 5.26% yearly margin.
This strategic deal will boost MTI’s operational efficiency and MBMA’s financial performance.
In conclusion, Boy Thohir’s disposal of MBMA shares and the company’s successful IPO are important business milestones in Indonesia. These strategic measures might boost Boy Thohir’s profits and highlight MBMA’s strong development possibilities in the mineral and electric car battery materials business.