PT Archi Indonesia Tbk (ARCI) allocated a portion of the proceeds from the initial public offering (IPO) to two subsidiaries in the form of loans worth Rp440.9 billion.

The subsidiaries that received the loan were PT Meares Soputan worth Rp250.38 billion and PT Tambang Tondano Nusajaya worth Rp190.67 billion.

Furthermore, the two subsidiaries will use the loan funds to pay part of the bank loan principal.

As for this year, Archi has prepared a capital expenditure (capex) of Rp1.2 trillion.

Archi Indonesia's Director of Finance and Chief Financial Officer (CFO) Adam Jaya Putra said the company will spend capital expenditure to explore mines to find new reserves and double the processing plant's capacity in the next five years.

"The need for capital expenditure for this business expansion will be financed from the company's internal cash," he said Wednesday (14/7).

Until December 2020, Archi has only exp