The business entity of PT Sumber Global Energy Tbk. (SGER), PT Sumber Mineral Global Abadi Tbk. (SMGA) plans to conduct an initial public offering (IPO) in the near future.

Launching its official website, SMGA was established on October 19, 2016 under the name PT Sumber Mineral Global Abadi. SMGA's business activities include metal and ore trading, sand and nickel trading, cement, lime, sand and stone wholesale trading, solid fuel and gas wholesale trading, and other products.

Currently, SMGA's business activities focus on trading nickel, limestone, and coal for domestic and export markets. The traded products come from mines processed from the Mining Business License (IUP) in cooperation with SMGA companies.

Currently, SMGA sells nickel and coal products to customers in the domestic market. The nickel sales are made to companies such as PT Putra Utama Sukses for 20,000 WMT per year and PT Huadi Nickel-Alloy Indonesia for 10,000 WMT per month.

Meanwhile, SMGA coal sales are carried out to PT Restu Usaha Mandiri amounting to 50,000 MT per year, PT Merak Energi Indonesia amounting to 330,000 MT per year, and PT Indonesia Morowali Industrial Park 360,000 MT per year.

Quoting the prospectus, SMGA said that currently it only has one subsidiary, namely PT Jasatama Mandiri Sukses (JMS). JMS is engaged in limestone mining.

SMGA said that JMS was established in 2021 and obtained IUP for non-metallic mineral commodities, namely limestone for industry. JMS mining activities are located in Bungku Pesisir District, Morowali Regency, Central Sulawesi Province with an area of 85.73 Ha.

Based on the results of exploration that has been carried out by JMS, limestone reserves owned by JMS are currently 300,000,000 tons with an estimated mine age of around 150 years.

For information, in this IPO, SMGA targets fresh funds of as much as IDR 175 billion to IDR 183.75 billion. SMGA set an offering price of IDR 100 to IDR 105 in this IPO.

In its prospectus, SMGA plans to offer as many as 1.75 billion new shares which are ordinary shares in the name. The number of shares is equivalent to 20% of SMGA's paid-up and paid-up capital after the IPO.

Image source: SMGA

Source: www.market.bisnis.com/Grup SGER Sumber Mineral Global (SMGA) Bakal IPO, Simak Profilnya