Shares of PT Abadi Nusantara Hijau Investama (PACK.JK) surged 9.8% to IDR 404 after the company disclosed a proposed US$463 million rights issue — the sale of new shares to existing holders — aimed at acquiring two nickel mining operations and transforming itself from a packaging company into a mining holding group. The plan is bold, the numbers are enormous relative to PACK's size, and the risks are sharply two-sided.

  • A Packaging Company Wants to Become a Nickel Giant Overnight. PACK is pursuing a rights issue of Rp8.20 trillion to support an expansion into nickel mining, after pivoting away from its former packaging business.

The move is part of a strategic plan to diversify and transform into a holding company focused on the mineral mining sector. Investors are betting the transformation unlocks value, but the company has no established track record in mining operations — a fact that should temper enthusiasm.

  • Two Acquisitions Worth Rp7.1 Trillion Are the Centerpiece. PACK plans to allocate Rp1.40 trillion to acquire Bumanik and Rp5.74 trillion for Denway Development Limited (DDL).

Bumanik is a nickel ore mining company located in Morowali, Central Sulawesi, with a concession area of 4,778 hectares. Both targets appear profitable: Bumanik posted earnings of Rp242.59 billion and DDL recorded a profit of CNY852.38 million as of August 31, 2026. The prices look reasonable against recent earnings, but integrating foreign and domestic mining assets simultaneously is a high-wire act.

  • Dilution Is Massive — Up to 74.6% for Passive Shareholders. PACK plans to issue up to 100 billion new shares at a nominal value of Rp10 each.

This could dilute existing shareholders' stakes by as much as 74.6% if they don't exercise their rights. The controlling shareholder, PT Eco Energi Perkasa, has committed to exercise its rights and will act as standby buyer. That backstop reduces deal-failure risk but concentrates control further.

  • Several Hurdles Remain Before Any Cash Changes Hands. The rights issue still requires shareholder approval at an extraordinary general meeting scheduled for November 30, 2026.

The offering must also receive effectiveness from OJK, Indonesia's financial regulator. The current rally is pricing in a deal that hasn't been approved yet — leaving room for a sharp reversal if either gate fails.

Bottom line: The stock's jump reflects excitement about PACK's shift into a sector with real revenue. But a near-75% potential dilution, zero mining heritage, and pending regulatory approvals mean today's price embeds substantial hope — and substantial risk.