Rajawali Corpora plans IPO for mining unit

Gold miner Archi Indonesia, a mining subsidiary of Rajawali Corpora, could raise up to Rp 2.4 trillion ($200 million) from an initial public offering set for the end of the year, Thejakartaglobe.com reported Wednesday.

The company, which operates a gold mine in Manado, North Sulawesi, is planning to sell between 15 percent and 20 percent of its shares to the public, according to Hoesen, a director of corporate listings at the Indonesia Stock Exchange (IDX).

?[Archi] may plan to offer their shares to investors all the way in the United States,? Hoesen said on Tuesday, adding that the miner had appointed four securities firms to manage the sale, consisting of two local firms and two foreign firms.

One of the local firms is Danareksa Sekuritas, he said, without naming the other parties.

Rajawali Corpora is an Indonesian conglomerate controlled by businessman Peter Sondakh, whose interests span mining to consumer goods.

The business group also plans to hold an IPO for Archipelago Resources ? a London-listed gold miner that Rajawali acquired at the end of last year ? after restructuring the company into one of its subsidiaries, Archi Indonesia or Indo HoldCo.

Rajawali Corpora acquired Archipelago Resources, which operates mining sites in North Sulawesi, the Philippines and Vietnam, in a $541 million deal.

Archipelago?s customers include companies from Australia, England, Singapore and Indonesia.

Mining companies in Indonesia have been struggling to gain a foothold in their financial performance since last year due to a weak commodity prices and a depreciating rupiah. (*)