Merdeka Gold Resources shines at stock market debut in Jakarta

The shares of PT Merdeka Gold Resources experienced an impressive debut on the Jakarta Stock Exchange, rising by the daily limit of 25% to 3,600 Rupiah on the first trading day. This marks the most successful IPO in Indonesia this year, with the company raising a remarkable 4.66 trillion Rupiah (281 million USD) by selling a 10% stake. Over 400,000 investors from more than two dozen countries showed interest in the IPO, which recorded the broadest participation since 2020, according to the director of the Indonesian Stock Exchange, I Gede Nyoman Yetna, during the listing ceremony. This success confirms confidence in the commodity sector, which benefits from rising gold prices, and lays the groundwork for similar projects, such as the planned capital raising by Zijin Gold International from China. Despite numerous challenges such as increases in government spending and political uncertainties, the Indonesian market shows strength. The Jakarta Composite Index hovers near its all-time highs, supported by the commitment of domestic investors. Mohit Mirpuri of SGMC Capital in Singapore emphasized that the IPO is a strong signal for the robust domestic capital market. Merdeka, a subsidiary of PT Merdeka Copper Gold, backed by prominent businessmen such as Garibaldi Thohir, plans to expand its activities in the Sulawesi region with the proceeds from the IPO. Gold production is set to commence in the first quarter of next year, aiming for an annual output of up to 500,000 ounces. The positive developments seamlessly continue the series of successful IPOs in Indonesia. For instance, PT Chandra Daya Investasi experienced a similar surge in July and has increased its value by over 800% since then, while PT Bangun Kosambi Sukses has gained more than 50% since its debut in January.