Indonesian state-owned fertilizer company PT Pupuk Kalimantan Timur (Pupuk Kaltim) is reported to be planning to use the proceeds of a planned initial public offering (IPO) to help finance a $2 billion fertilizer plant, according to a Jan. 17 report by Indonesia’s oil, mining, and energy news portal petromindo.com.
According to a post by indonesia.postsen.com, Pupuk Kaltim this week officially started the establishment of a fertilizer industrial area in Fakfak Regency, West Papua. According to a Bloomberg report, citing a Jan. 16 company emailed statement, it aims to finish building in the next five years.
Reports emerged early this month that parent company PT Pupuk Indonesia was considering selling primary shares representing a 10%-20% stake in Pupuk Kaltim, and that the proceeds of the IPO, if it went ahead, would be used for capacity expansion, according to Reuters, citing two unnamed sources with direct knowledge of the matter (GM Jan. 6, p. 29).
The companies are eyeing the offering to take place in Jakarta this year, according to the report.
No further details are readily available about the capacities planned at the new fertilizer industrial area. Pupuk Kaltim already is Indonesia’s biggest ammonia and urea producer, with four ammonia plants with total production capacity of 2.18 million mt/y and five urea plants producing 3.77 million mt/y, according to Green Markets database.