Indonesian gold miner MGR has listed for the second time in Hong Kong, but its shares have fallen below the issue price

Indonesian gold mining company MGR was listed for the second time on the Hong Kong Stock Exchange on June 26, becoming the first Indonesian company to be listed in HDR format in Hong Kong. On the first day, the stock price fell below the issue price, hitting a low of HKD 24.06 during trading, a decline of approximately 9.55%, and closing at HKD 25.10, with a total market capitalization of approximately HKD 369.7 billion. The issue price was HKD 26.60, raising approximately HKD 2.385 billion, with 11 cornerstone investors including Ping An Asset Management

On the morning of June 26, Indonesian gold miner Merdeka Gold-DRS (MGR, 06228.HK) officially listed on the Hong Kong Stock Exchange, with UBS and CITIC Securities as joint sponsors.

With this, MGR becomes the first Indonesian company to list in Hong Kong in the form of HDR and the first Indonesian company to achieve dual listings in Indonesia and Hong Kong.

On the first day of trading, MGR opened flat, with an intraday low of HKD 24.06, a decline of approximately 9.55%. As of the lunch break, the stock was reported at HKD 25.10, down 5.64%, with a total market capitalization of HKD 369.757 billion.

This global offering consists of 89.6686 million HDRs, of which 8.9669 million are for public offering in Hong Kong, accounting for approximately 10%; and 80.7017 million are for international offering, accounting for approximately 90%.

The results of the offering show that the public offering portion was subscribed 4.42 times, with a minimum of 100 HDRs per lot, while the international placement recorded a subscription rate of 7.67 times.

The final issue price was set at HKD 26.60, the same as the offer price. Accordingly, MGR's HDR offering raised approximately HKD 2.385 billion. After deducting estimated listing expenses, the net proceeds are approximately HKD 2.269 billion.

MGR has introduced 11 cornerstone investors, including Ping An Asset Management, WanGuo, Glencore, MOC, Trafigura, Kaiyuan Mining, GF Fund, Zhongwei Co., Ltd., Orix, Wind Sabre, and Dingya Capital, collectively subscribing to 44.7798 million HDRs, involving approximately HKD 1.191 billion.

MGR was established in 2015 and is a gold mining company listed on the Indonesia Stock Exchange, as well as one of Asia's leading pure gold producers.

Based on its core asset, the Pani gold mine, and according to CRU data, this project is the largest primary gold mine in Indonesia based on resource and reserve metrics. MGR expects to rank among the top two primary gold mines in Asia by production by 2030.

MGR is a holding subsidiary of PT Merdeka Copper Gold Tbk (referred to as "MCG"), which is an Indonesian mining group listed on the Indonesia Stock Exchange since June 2015

After the company's secondary listing in Hong Kong, MCG still holds approximately 63.33002% of the shares, making it the controlling shareholder of MGR, while the equity held by HDR holders corresponds to 6.08692% of MGR's equity