Merdeka Gold Resources Makes Muted Debut in Hong Kong

Indonesian gold miner Merdeka Gold Resources made a muted debut on the Hong Kong Stock Exchange, with its depositary receipts trading down 9.5% from the offer price despite strong subscription rates. The secondary listing raised HK$2.27 billion for existing shareholders as the company advances its Pani Gold Project in Indonesia, which is projected to become one of the country's largest primary gold mines.

By Amanda Lee

Merdeka Gold Resources had a subdued trading debut on a busy day for new listings in Hong Kong as the Indonesian gold miner tapped the financial hub's vibrant capital market.

Only about a dozen non-Chinese or nonlocal companies have held offerings in the city in recent years. In 2025, the financial hub reclaimed its position as a top venue for initial public offerings, fueled by a wave of listings by corporations based in China.

The secondary listing comes as Merdeka Gold is advancing development of the Pani Gold Project in Indonesia, which the company said is set to become one of the country's largest primary gold mines. The open-pit mine, which saw first gold poured in the first quarter of 2026, has the potential to reach peak annual production of about 500,000 ounces at full capacity, according to the company.

Hong Kong depositary receipts of Merdeka Gold opened at 26.60 Hong Kong dollars on Friday, unchanged from its offer price. Trading was subdued, with the stock rising as much as 1.1% before reversing to trade 9.5% lower.

The Jakarta-listed company, a subsidiary of Indonesian mining group Merdeka Copper Gold, recorded net proceeds of about HK$2.27 billion, equivalent to US$289.5 million, from the offering.

The Hong Kong public offering of 9.0 million HDRs was 4.42 times subscribed, the gold producer said. The remaining 80.7 million under the international offering was 7.67 times subscribed.

All of the shares in the offering were sold by existing shareholders. The company didn't receive proceeds from the transaction.

Write to Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

June 25, 2026 23:49 ET (03:49 GMT)

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