Metal and mining firm PT Trimegah Bangun Persada advanced in its Jakarta debut after raising 10 trillion rupiah ($672 million) in Indonesia’s largest initial public offering this year. The sale shed light on the growing investor appetite for the country’s electric-vehicle sector.
The shares rose 4.4% to 1,305 rupiah on Wednesday. The company, also known as Harita Nickel, offered about 8 billion shares at 1,250 rupiah apiece. They were sold at the top of a marketed range that started at 1,220 rupiah.
The listing attracted attention from domestic and foreign investors seeking to profit from the EV supply chain, which isn’t largely represented in Jakarta’s stock exchange. Harita Nickel is the first company in Southeast Asia’s largest economy to process low-grade nickel ore into battery grade metal, using a method known as high-pressure acid leaching, or HPAL.
The offering priced at the top of the range further boosted sentiment toward the EV sector amid President Joko Widodo’s plan to build an end-to-end EV supply chain onshore. The nation has been seeking to lure investments in the industry to help it capitalize on its nickel reserves, which are the world’s biggest.
Harita Nickel’s performance also provides investors cues ahead of the debut by nickel mining and processing firm PT Merdeka Battery Materials on April 18, following its 8.75 trillion rupiah IPO.
Learn more: Bloomberg