Indonesian state-owned fertilizer company PT Pupuk Kalimantan Timur is reported to be planning an initial public offering IPO in Jakarta in 2023 that could raise between $500 million and $1 billion.
Parent company PT Pupuk Indonesia could sell primary shares representing a 10%-20% stake in the subsidiary company, according to a Reuters report this week, citing two unnamed sources with direct knowledge of the matter.
PT Pupuk Indonesia owns 99.99% of Kalimantan-based “Pupuk Kaltim.”
At least two banks – reportedly Citigroup and Credit Suisse – have been approached for the deal, according to the report, and more could join the syndicate.
The proceeds of the IPO, if it goes ahead, will be used for capacity expansion, according to the report, citing one of the sources.
Pupuk Kaltim has been part of PT Pupuk Indonesia since 2012, and is now Indonesia’s biggest ammonia and urea producer. The producer has 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.
The proposed Pupuk Kaltim IPO is among four potential state firm public offerings Indonesia is said to be considering for 2023, according to local media reports last month.