People who asked not to be named because the talks are private say Merdeka Battery Materials is weighing a Hong Kong issuance of depositary receipts. They added the company could follow other Indonesian miners that are eyeing the city to raise capital.
A number of Indonesian firms are scouting Hong Kong for fundraising as trading at home stays thin and returns disappoint. So far this year, the Jakarta Composite Index has fallen 23%, the weakest showing of any major index in the Asia-Pacific region. In June, PT Merdeka Gold Resources, like Merdeka Battery a subsidiary of PT Merdeka Copper Gold, pulled in roughly HK$2.4 billion, or $306 million, through Hong Kong depositary receipts. Separately, PT Amman Mineral Internasional, an Indonesian copper producer, is mulling a listing, people familiar with the situation said.
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Merdeka Battery ranks among Indonesia's largest nickel players, operating substantial mining and processing facilities in Sulawesi. Its shares are down about 10.5% this year as metal prices fell, and a jump in sulfur costs - a key input for making battery-grade nickel - has added pressure. The company is valued at about $3.1 billion.
