Indonesia is said to be one of the countries that will avoid dark clouds next year. Even with this year’s G20 Summit, many commitments that ensure investment next year in Indonesia remain convincing. A nickel trading company from China, Lygend Resources & Technology, will soon conduct an initial public offering on the Hong Kong exchange and place Indonesia at the central point of the company’s massive expansion.
Launching the IPO prospectus, Lygend has ambitions to raise up to US$ 594 million or the equivalent of IDR 9.21 trillion (assuming an exchange rate of IDR 15,500/US$) to finance business expansion in Indonesia. The company’s shares will begin trading on the Hong Kong Stock Exchange on December 1.
The company said it would use 56.4% of the IPO funds for the development and construction of a nickel production project on Indonesia’s Obi Island. Then 24% of the IPO funds will be used for additional capital in Contemporary Brunp Lygend (CBL), a joint venture with Contemporary Amperex Technology (CATL).
CBL will focus on projects in Indonesia across the entire new electric vehicle (NEV) industry value chain, from nickel mining exploration, production of nickel and NEV battery materials, to NEV battery manufacturing and recycling. CBL is currently planning to set up a joint venture with Indonesian partners, namely PT Aneka Tambang Tbk (ANTM) and PT Indonesia Battery Industry (IBI).
Approximately 9.6% of the IPO funds will be used to invest in potential nickel mines in Indonesia to secure the supply chain given the increasingly crowded landscape of the nickel downstream industry. Meanwhile, the remaining 10% will be used for working capital and general company activities.
This massive expansion has enabled the nickel trading company to significantly increase exports of the metal, for which demand for nickel is very high in China. For information, Lygend itself is the largest nickel product trader in the world and the largest in China with a market share of 26.8% in 2021.
November 26, 2022, CNBC Indonesia
(https://www.cnbcindonesia.com/market/20221126141052-17-391449/korporasi-china-ini-ipo-rp-9-triliun-demi-garap-nikel-ri)