Jakarta. Indonesian nickel mining company, Adhi Kartiko Pratama (AKP) is offering 20 percent of the company's total shares in an initial public offering (IPO). Following the IPO, a Korean mining company will acquire 60% of the company's shares from existing shareholders. 

The public offering period is set from Jan. 3 to 5, 2024, with stock listing on the Indonesia Stock Exchange (IDX) scheduled for Jan. 9, 2024. The company will be listed as NICE in the IDX. Priced at Rp 438 per share, AKP is aiming to generate IPO proceeds amounting to Rp 532.78 billion ($ 4.29 million).

Before the IPO, Sungai Mas Minerals (SMM) held 51 percent of AKP's shares, while Inti Mega Ventura (IMEV) owned 48.18 percent. Additionally, individual shareholders Michael Adhidaya Susantyo and Victor Agung Susantyo held 0.41 percent each. After the IPO, SMM shares will be diluted to 41 percent, IMEV will have 38.18 percent, and Michael and Victor will retain 0.41 percent.

Post-IPO, there are plans for the release of AKP's shares by SMM, IMEV, Michael, and Victor, totaling 60 percent of the company's shares, to a South Korean investor LX International Corp (LXI), based on a CSPA dated Nov. 2, 2023.

LXI will acquire AKP's shares through its subsidiary, Energi Battery Indonesia (EBI). The transaction, priced at the IPO offer of Rp 438 per share, is anticipated to reach a total value of Rp 1.59 trillion. Following the share acquisition, LXI will assume ownership from Herman Herry Adranacus, the current controller of SMM.

LXI CEO Yoon Chun-sung announced its intention to acquire an Indonesian nickel mine with an investment of KRW 133 billion (Rp 1,57 trillion) in November, as the company is shifting from coal to essential minerals, aligning with the growing demand for electric vehicle batteries.

"With the US Inflation Reduction Act (IRA), Indonesia's role as a major nickel supplier has significantly strengthened. Leveraging over 40 years of experience in Indonesia and a proven track record in the successful development and operation of coal mines, we remain fully committed to strategically developing mineral and material businesses for secondary batteries," the company's spokesperson said last November.

The AKP mine is located near the Morowali Industrial Zone in Sulawesi, covering 2,000 hectares, seven times the size of Yeouido Island in Seoul. With verified ore reserves of 36 million tons out of a total resource of 51.4 million tons, the mine is poised to supply resources for over 7 million electric vehicles.

The company aims to boost AKP's nickel annual production from 1.5 million tons to 3.7 million tons by 2028. LXI holds the rights to acquire the entire production output based on the offtake agreement.

LXI operates globally in energy, industrial materials, and business solutions. The company is involved in the development, investment, and operation of coal mines and coal trading businesses in Indonesia, China, and Australia. LXI also engages in palm oil plantations in Indonesia, agribusiness, and food trading.

Furthermore, LXI invests in and operates steel processing plants and power facilities, including hydro, thermal, cogeneration, and petrochemical power plants in Indonesia, China, Vietnam, India, and Poland. LXI is also involved in the development and investment in oil and gas power projects in the Middle East, Southeast Asia, and Kazakhstan.

Previously known as LG International Corp, LXI changed its name in July 2021. It was founded in 1953 and is headquartered in Seoul, South Korea. LXI has been listed on the Korea Stock Exchange since 1976.