Merdeka Gold Shares Jump by Limit After Indonesia’s Biggest IPO

(Bloomberg) — PT Merdeka Gold Resources surged by the 25% daily limit in its Jakarta trading debut after wrapping up Indonesia’s largest initial public offering this year.

Shares of the miner climbed to 3,600 rupiah on Tuesday, up from the IPO price of 2,880 rupiah. Merdeka had raised 4.66 trillion rupiah ($281 million) by selling a 10% stake in the listing.

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The offering drew interest from more than 400,000 investors spread across two dozen countries, marking the broadest retail participation in an Indonesian IPO since 2020, Indonesia Stock Exchange Director I Gede Nyoman Yetna said during the listing ceremony.

Merdeka’s debut comes as gold miners around the world are tapping into capital markets to raise funds, buoyed by the meteoric rally in gold prices. The optimism is extending into peers like China’s Zijin Gold International Co., which is planning to raise $3.2 billion in what is set to be the world’s biggest listing since May.

The performance also stands out as a bright spot in a market that’s faced several headwinds this year as concerns over government overspending, accelerating foreign outflows and political uncertainty weigh on sentiment. Still, the benchmark Jakarta Composite Index has recovered to hover near all-time highs, supported by steady buying from domestic investors.

“The IPO is another clear signal of the strength of Indonesia’s domestic investor base,” said Mohit Mirpuri, senior partner at SGMC Capital in Singapore. “It shows that local liquidity can still drive the market and provide depth, even when global investors are cautious.”

Merdeka is a unit of listed miner PT Merdeka Copper Gold, which includes the backing of business magnates like coal baron Garibaldi Thohir. The company is developing a mine in Indonesia’s Sulawesi island and will use proceeds from the IPO for working capital and debt repayment.

The gold mine is expected to start production in next year’s first quarter with peak production at up to 500,000 ounces of gold annually, according to the company’s statement on Tuesday.

PT Trimegah Sekuritas Indonesia, PT Indo Premier Sekuritas Indonesia, PT Sinarmas Sekuritas and PT UOB Kay Hian Sekuritas helped arrange the IPO.

Merdeka’s strong debut follows a string of other well-performing IPOs in Indonesia. In July, investment firm PT Chandra Daya Investasi surged by the daily limit on its first trading day and has gained more than 800% since. Real estate company PT Bangun Kosambi Sukses also hit the daily limit during its January debut has rallied over 50% this year.