Receiving OJK Effective Statement, Pertamina Geothermal Ready For IPO At A Price Of IDR 875

IPO illustration (Photo: Doc. Antara)

PT Pertamina Geothermal Energy (PGE) has obtained an effective statement from the Financial Services Authority (OJK) to carry out an initial public offering (IPO) on the Indonesia Stock Exchange.

With this effective statement, PT Pertamina Geothermal Energy Tbk (PGEO) will soon carry out its initial public offering which is scheduled to take place from February 20 to 22 and then proceed with recording of securities on the stock exchange floor on February 24, 2023.

The issuer with the stock code PGEO is targeting a maximum of IDR 9.78 trillion from the release of a maximum of 25 percent of its shares to the public from issued and fully paid capital after the IPO or a maximum of 10.35 billion ordinary shares with an exercise price of IDR 820 - IDR 945.

Meanwhile, the amount of 10.35 billion ordinary shares in this name is with a value of Rp500 per share. Later it will be offered to the public at a Offer Price of Rp875 per share.

Meanwhile, the sovereign wealth fund Indonesia or the Indonesia Investment Authority (INA) has expressed interest in bringing a number of investors to participate in Pertamina Geothermal Energy's initial public offering.

Finance Director of PT Pertamina Geothermal Energy Tbk. Nelwin Aldriansyah is optimistic about investor interest in participating in the IPO of the issuer codenamed PGEO in line with the roadshow that has been carried out by the company.

"We are combing through various alternative funding options, including the release of the initial public offering (initial public offering) to support the company's plan to develop a company's installed capacity of 600 MW until 2027," he said in an official statement quoted on Friday, February 17.

Just so you know, in the initial public offering, PGE appointed PT Mandiri Sekuritas, PT CLSA Sekuritas Indonesia, and PT Credit Suisse Sekuritas Indonesia as underwriters for the issuance of securities. PGE also appointed CLSA, Credit Suisse, and HSBC as international selling agents.

Through the proceeds of a maximum of Rp9.78 trillion, the subsidiary of PT Pertamina (Persero) under the Pertamina New & Renewable Energy (Pertamina NRE) will allocate part of the IPO funds for capital expenditure (capex) needs.

Nelwin explained that in 2023 PGE budgeted capital expenditures for a new investment of 250 million US dollars from capital expenditures of only 60 million US dollars in 2022.

Furthermore, in 2024, Pertamina Geothermal Energy will prepare a new investment worth a total of 350 million US dollars. In total, PGE prepared an investment worth 1.6 billion US dollars throughout 2023-2027.

That's why we are combing through various alternative funding, such as the release of this initial public offering. In the near future we will also issue Green Bond and other financing alternatives," Nelwin concluded.