IPO News | Indonesia's MGR Files with Hong Kong Stock Exchange as One of Asia's Leading Pure Gold Producers

According to the Hong Kong Stock Exchange disclosure on March 20, PT Merdeka Gold Resources Tbk (abbreviated as: MGR) has submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, with UBS and CITIC Securities serving as joint sponsors.

Company Overview

The prospectus shows that MGR is a gold mining company listed on the Indonesia Stock Exchange, one of Asia’s top pure gold producers. Based on the Pani Gold Mine, according to CRU data, by resource and reserve benchmarks, this project is Indonesia’s largest primary gold deposit. MGR expects to rank among the top two primary gold mines in Asia by production volume by 2030.

With its reserve base supporting future resource potential, the lowest average stripping ratio globally, and a rapid capacity growth curve capable of reaching peak production in a short period, MGR is uniquely positioned. The company has leveraged Indonesia’s excellent natural endowments and the mining industry’s key role in the national economy. By capitalizing on its competitive advantages in mine scale, operational efficiency, technology, future growth opportunities, and resource potential, MGR is emerging as a regional influential gold producer.

MGR is a majority-owned subsidiary of MCG, an outstanding Indonesian mining group listed on the Indonesia Stock Exchange since June 2015. MCG has a strong track record in developing and operating large low-cost mines, including the Tujuh Bukit Gold Mine in East Java.

Additionally, MCG’s track record includes operational experience gained through Sulawesi Cahaya Mineral (“SCM”), a controlled subsidiary of PT Merdeka Battery Materials Tbk (“MBM”), which is also a majority indirect subsidiary of MCG. SCM successfully increased its capacity during 2024-2025, demonstrating MCG’s ability to execute large-scale mining projects for different minerals and manage operational capacity upgrades.

Furthermore, MGR indirectly benefits from the support of two of Indonesia’s most respected investment groups—PT Provident Capital Indonesia (“PCI”) and PT Saratoga Investama Sedaya Tbk (“SRTG”). These groups bring decades of experience in building and expanding multi-billion-dollar publicly listed companies, along with a commitment to excellent corporate governance, disciplined capital allocation, long-term value creation, and a deep understanding of Indonesia’s regulatory, economic, and operational environment.

Financial Data

Revenue

In 2023, 2024, and 2025, the company’s revenue was approximately $1.394 million, $1.75 million, and $132,000, respectively.

Gross Profit

In 2023, 2024, and 2025, the company’s gross profit was approximately $458,000, $570,000, and -$146,000, respectively.

Industry Overview

According to the US Geological Survey (USGS) Mineral Commodity Summary 2026, the estimated global gold mine reserves amount to 2,109.1 million ounces (65,600 tons) based on gold content. A significant portion of these reserves are concentrated in a few countries, with the top six countries holding over half (61.0%) of all gold reserves. Australia has the largest reserves, accounting for 19.8% of the global total, or 418.0 million ounces (13,000 tons), followed by Russia at 18.3% (385.8 million ounces, 12,000 tons). South Africa ranks third with substantial reserves of 160.8 million ounces (5,000 tons), representing 7.6% of the global total. In Asia, Indonesia’s reserves are the highest at 115.7 million ounces (3,600 tons), or 5.5% of the global total. In the Americas, Canada has the largest reserves at 102.9 million ounces (3,200 tons), about 4.9% of the global total.

In 2020, due to decreased demand from the jewelry industry, total gold fabrication demand was 66.4 million ounces (2,066 tons). However, from 2021 to 2024, manufacturing demand rebounded sharply, fluctuating between 81 and 92 million ounces (2,519 to 2,862 tons). Mid-term, manufacturing demand is expected to decline to 2020 levels, fluctuating between 65 and 69 million ounces (2,022 to 2,146 tons). The decline is attributed to increased geopolitical tensions and tariffs potentially boosting investment demand and prices, while higher prices may suppress price-sensitive jewelry demand.

Regionally, China and India have historically been the two largest consumers of gold jewelry, consuming approximately 13.6 million ounces (421.8 tons) and 11.9 million ounces (370.8 tons) of global gold fabrication in 2020. Despite the pandemic-related slowdown in 2020, demand recovered quickly, with India surpassing China in 2021, leading with 22.1 million ounces (687.0 tons). Most of this demand came from India’s jewelry sector, which peaked at 19.6 million ounces (610.9 tons) in 2021.

Although global manufacturing demand is projected to return to 2020 levels by 2025, India remains the largest gold manufacturing consumer, accounting for 25.4% of global demand, followed by China at approximately 16.2%. By 2025, North America and Western Europe together are expected to account for about 17.8% of global demand. Looking ahead, India and China are expected to continue dominating gold manufacturing demand, collectively accounting for 42.4% by 2030.

Board of Directors

The board will consist of four directors.

Ownership Structure

Intermediary Team

Joint Sponsors: UBS Securities Hong Kong Limited, CITIC Securities (Hong Kong) Limited

Legal Advisors: For Hong Kong and US law: Sutherland Asbill & Brennan LLP; For Indonesian law: Assegaf Hamzah & Partners

Joint Sponsor Legal Counsel: For Hong Kong and US law: Reed Smith LLP; For Indonesian law: Hiswara Bunjamin & Tandjung

Reporting Accountants and Independent Auditors: BDO Limited, Hong Kong

Industry Consultant: CRU International Limited