Analyst: EMAS share listing on HKEX strengthens investment access to Indonesia

Senior Analyst at Mirae Asset Sekuritas, Nafan Aji Gusta, assessed that PT Merdeka Gold Resources Tbk (EMAS) listing its shares on The Stock Exchange of Hong Kong (HKEX) strengthens global investment access to Indonesia. “From a macro perspective, the gold commodity is on a positive trend as a safe-haven asset amidst geopolitical uncertainty and global economic fluctuations. Listing on an international exchange when the main commodity price is strong provides greater appeal for foreign investors,” Nafan said in a statement received in Jakarta on Wednesday. According to him, access to one of Asia’s largest financial centres will strengthen the company’s capital structure as it will not only depend on the domestic capital market but also obtain alternative funding from global investors to support the development of strategic projects. Nafan assessed that EMAS’s success in listing on the HKEX Main Board also shows that Indonesian companies are capable of meeting international standards in aspects of governance, transparency, and asset quality, which are of concern to global institutional investors. “EMAS’s success in penetrating the HKEX Main Board with the stock code 6228 demonstrates that the quality of its assets, particularly the Pani Gold Mine Project, management, and business prospects have met the standards of global institutional investors,” he said. He added that this achievement has the potential to strengthen Indonesia’s investment image in the eyes of the world because it shows that national companies are capable of developing world-class mining projects with good governance standards. Besides expanding the foreign investor base, he continued, the presence of EMAS’s HDR (Hong Kong Depositary Receipts) in Hong Kong is considered capable of increasing the exposure of the Indonesian capital market to global investors, while also reflecting the increasing openness of national financial market integration with international capital markets. He explained that Hong Kong, which has high liquidity, is considered to provide opportunities for EMAS to attract various institutional investors, including sovereign wealth funds, hedge funds, and global investment managers focused on the commodity and mining sectors. Greater liquidity is also expected to support a more efficient share price discovery process, potentially increasing the company’s valuation both on the HKEX and the Indonesia Stock Exchange. From an operational perspective, funding certainty is considered to accelerate the development of the Pani Gold Mine Project according to target. “With more secure funding from the global market, the risk of delays in the commercialisation of the Pani Gold Mine can be minimised,” Nafan said. EMAS officially began trading on the HKEX Main Board with the stock code 6228. In this corporate action, the HDR was offered at a price of 26.60 Hong Kong dollars per HDR with a trading unit of 100 HDR per lot. This step is expected to expand global investor access to the Pani Gold Mine Project while strengthening the company’s funding structure.