Milbank, Sidley Austin, and Indonesia’s Hiswara Bunjamin & Tandjung, an associate firm of Herbert Smith Freehills, advised on copper and gold mining company Amman Mineral’s IDR10.73 trillion (USD710 million) IPO on the Indonesian Stock Exchange.
“Our observation is that companies are looking to seize the fundraising window prior to Indonesia’s general election in 2024, so the market will be very busy over the next six months,” Viska Kharisma, partner at Hiswara Bunjamin & Tandjung in Jakarta who led the team in the transaction, told Asia Business Law Journal.
Commenting on the challenges of the deal, Kharisma said one aspect that needs to be considered carefully is compliance. As a general principle, the Capital Markets Law prohibits prospectuses from including false information regarding material facts, and excluding true information so as not to give a misleading description of material facts.
“In recent IPOs involving mining companies, we note that investors are more concerned about ESG compliance,” said Kharisma. “In practice, although it is not mandatory, we have seen more Indonesian companies hire a director who is in charge of ESG, and the director will supervise ESG compliance.”
Milbank’s Singapore team advised Indonesian company Amman Mineral on the transaction, led by the managing partner David Zemans and partner Giles Kennedy. Partner Terry O’Donnell was also involved in the transaction.
Partners Matthew Sheridan and Alexius Chong in Singapore led the Sidley Austin team, which counselled the international selling agents CLSA, DBS Bank, ING and Jefferies as well as the joint lead managing underwriters BNI Sekuritas, CLSA Sekuritas, DBS Vickers Sekuritas and Mandiri Sekuritas.
Amman Mineral, which owns the second-biggest copper and gold producer in Indonesia, will use the capital raised from the IPO to repay debts and fund several projects, including a USD980 million copper smelter scheduled for completion in May 2024.