JAKARTA — PT Merdeka Gold Resources, a prominent gold mining entity and a direct subsidiary of PT Merdeka Copper Gold Tbk (MDKA), is poised to make a significant move in the capital market. The aspiring issuer plans to allocate the proceeds from its upcoming Initial Public Offering (IPO), projected to range from IDR 2.91 trillion to IDR 4.88 trillion, primarily towards bolstering its working capital and refinancing existing debt. This ambitious public offering reflects the company’s strategic vision for growth and financial optimization.
During its highly anticipated IPO, Merdeka Gold Resources intends to issue a maximum of 1.61 billion shares, each with a nominal value of IDR 150. This substantial offering represents approximately 10% of the company’s issued and paid-up capital. The indicative price range for these shares has been set between IDR 1,800 and IDR 3,020 per share. Consequently, the total funds anticipated to be raised by Merdeka Gold are estimated to fall within the impressive range of IDR 2.91 trillion to IDR 4.88 trillion. As stated in the company’s prospectus on Monday, September 8, 2025, “The total value of this initial public offering is a maximum of IDR 4.88 trillion,” underscoring the scale of this corporate action.
The capital generated from the IPO will be strategically deployed by the Pani gold mine owner for two principal objectives: enhancing working capital across its operational subsidiaries and undertaking the crucial refinancing of debt owed to its parent company. This two-pronged approach is designed to strengthen its financial foundation and support ongoing and future mining activities.
The first significant allocation, amounting to approximately IDR 328.4 billion, is earmarked for the working capital of PT Pani Bersama Tambang (PBT). This funding will be disbursed in stages to PBT, which is a direct subsidiary of Merdeka Gold Resources and effectively a grandchild company of MDKA, with Merdeka Gold holding a commanding 99.99% stake. The capital injection will be vital for financing core operational activities, including the procurement of essential raw materials, covering electricity costs, and managing employee expenses, thereby ensuring smooth and efficient gold production.
A second portion, also approximately IDR 328.4 billion, will be channeled towards the working capital of PT Puncak Emas Tani Sejahtera (PETS). PETS operates as a direct subsidiary of PT Pani Bersama Tambang, further integrating it into the Merdeka Gold Resources operational structure. This allocation will be provided in the form of a guarantee from Merdeka Gold Resources, solidifying its commitment to supporting its sub-subsidiaries’ financial stability and operational continuity.
The remaining substantial portion of the IPO proceeds will be strategically utilized by Merdeka Gold Resources for the early repayment of its obligations to its parent company, PT Merdeka Copper Gold Tbk (MDKA). This move is in accordance with a debt agreement originally dated April 8, 2022, and subsequently amended on August 21, 2024. As of August 4, 2025, Merdeka Gold Resources’ total principal outstanding debt to MDKA stands at a considerable US$260 million, equivalent to approximately IDR 4.26 trillion, highlighting the significant impact of this refinancing strategy.
To ensure the successful execution of this pivotal corporate action, Merdeka Gold has enlisted the expertise of three leading underwriters: Indo Premier Sekuritas, Trimegah Sekuritas Indonesia, and Sinarmas Sekuritas. Their involvement underscores the importance and potential of Merdeka Gold Resources’ IPO in the Indonesian capital market, positioning the company for its next phase of growth and development in the dynamic gold mining sector.
Summary
PT Merdeka Gold Resources, a subsidiary of PT Merdeka Copper Gold Tbk (MDKA), is conducting an Initial Public Offering (IPO) to raise between IDR 2.91 trillion and IDR 4.88 trillion. The company plans to issue a maximum of 1.61 billion shares, representing about 10% of its capital. Funds from this offering are primarily designated for bolstering working capital and refinancing existing debt.
Approximately IDR 328.4 billion each will be directed towards the working capital of its subsidiaries, PT Pani Bersama Tambang and PT Puncak Emas Tani Sejahtera. The significant remaining portion of the proceeds will be used for the early repayment of its US$260 million debt to its parent company, PT Merdeka Copper Gold Tbk.