MERDEKAGOLD-DRS prices HK IPO at HKD26.6 per depositary receipt

MERDEKAGOLD-DRS (06228.HK) priced its Hong Kong secondary listing at HKD26.6 per depositary receipt, the Indonesian gold mining company said.

The company expects to announce today the level of interest in the international offering, the level of applications under the Hong Kong public offering and the basis of allocation, according to a company statement.

The depositary receipts will trade in board lots of 100 units each on the Main Board of the Stock Exchange of Hong Kong. Trading is expected to commence at 9:00 a.m. tomorrow, assuming the global offering becomes unconditional by 8:00 a.m. The offer price excludes a 1% brokerage commission, a 0.0027% SFC transaction levy, a 0.00565% Stock Exchange trading fee and a 0.00015% Accounting and Financial Reporting Council transaction levy.

The secondary listing gives the Indonesian gold miner a presence on Asia's third-largest stock exchange alongside its primary listing. First-day trading will test institutional demand for Southeast Asian mining assets in Hong Kong, as Goldman Sachs reiterated its buy rating on HKEX (00388.HK), citing offshore China government bond futures as a revenue and diversification driver. Investors will watch the debut for clues on the pricing of future resource-sector secondary listings in the city.

This article is for informational purposes only and does not constitute investment advice.