What to know:
- PT Merdeka Gold Resources plans a Hong Kong HDR listing worth at least $500 million.
- The deal could become Hong Kong’s first HDR offering in 12 years.
- Indonesian firms are exploring overseas listings amid domestic market pressure.
- Merdeka Gold shares have climbed 151% since their 2025 Jakarta debut.
PT Merdeka Gold Resources is planning a rare Hong Kong HDR listing to raise capital and revive a structure inactive for over a decade. The move highlights weak Indonesian market conditions and Hong Kong’s push to attract foreign issuers despite ongoing concerns about liquidity, trading activity, and investor demand.
Merdeka Gold Revives Hong Kong HDRs
Indonesian miner PT Merdeka Gold Resources is preparing for a Hong Kong stock-market debut through a listing structure that has remained largely unused for more than 12 years.
The Jakarta-listed company plans to raise at least $500 million through Hong Kong depositary receipts, or HDRs, according to people familiar with the matter.
The company may launch the offering as early as June. Discussions over the timing and final deal size are still ongoing. The amount raised could also depend on movements in global gold prices.
PT Merdeka Gold Resources operates as a unit of PT Merdeka Copper Gold, which completed its listing on the Jakarta Stock Exchange in 2025.
Hong Kong’s capital market has regained momentum this year, with fundraising activity moving toward its strongest level since 2025.
While Chinese and Hong Kong firms still dominate the market, exchange officials have expanded efforts to attract companies from Southeast Asia and other international markets. The Merdeka transaction could also revive Hong Kong’s dormant HDR market.
Hong Kong introduced HDRs in 2008 as an alternative listing route for companies unable to issue shares overseas or maintain offshore shareholder registers. However, the structure struggled to attract lasting investor interest.
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HDR Market Faces Liquidity Challenges
Several companies eventually delisted their HDRs after weak trading activity reduced market participation. Firms such as Tapestry Inc. and Glencore Plc later exited the market.
At present, only Fast Retailing Co., the parent company of Uniqlo, still trades HDRs in Hong Kong after launching the structure in 2014.
Trading shows a very clear downward trend. Last month, on average, Fast Retailing’s HDRs were traded around 8,600 times a day.
On the first year since their introduction, a daily trading volume of over 198,000 HDRs was seen. However, daily trading volume of about 1.2 million Fast Retailing’s stocks happens on the Tokyo Stock Exchange.
The reason why liquidity is said to be an issue for investors is that market analysts have observed that there needs to be more international recognition of listings from HDRs in order for HDR to attract attention.
Indonesian Firms Seek Broader Investor Access
In an effort to attract more foreign companies, Hong Kong authorities are building alliances. The year 2023 saw HKEX sign a cooperation agreement with the Indonesian Stock Exchange for cross-listing.
Merdeka Gold is expanding to international markets as the Indonesian stock market experiences a downturn.
The Jakarta Composite Index is 28.9% lower compared to last year due to concerns about fiscal responsibility and possible credit rating downgrades. Hong Kong, on the other hand, is only 0.1% lower than last year.
Even with a favorable domestic backdrop, shares of Merdeka Gold have soared by 151% after the stock debuted on the Jakarta exchange in September 2025.
Market valuation of the firm is now approaching $6 billion, although there has been some retrenchment from its highs in March as gold prices fell post-Iran conflict.
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