Release 579.9 Million Shares To Public, EBT Company Arkora Hydro Eyes Fresh Funds Of Up To IDR 179.77 Billion

Photo: Doc. Antara/Arkora Hydro

JAKARTA - New and renewable energy (EBT) power generation company PT Arkora Hydro Tbk (ARKO) held an initial public offering (IPO). The company released as many as 579.9 million new shares which will be offered on 4-6 July 2022.

ARKO President Director Aldo Artoko said the number of company shares offered represented 20 percent of the company's issued and paid-up capital after the stock IPO. ARKO's share price offered to the public is in the range of IDR 286 to IDR 310 per share.

"The fresh funds that ARKO has the potential to receive are between Rp. 165.85 billion to Rp. 179.77 billion," Aldo said in a statement quoted by Antara, Wednesday, June 22.

According to Aldo, the company will use the proceeds from the IPO for two purposes. First, around 63 percent is used for additional investment in subsidiaries which will be maximized for the development of EBT projects in the future, namely 54 percent in PT Arkora Hydro Sulawesi (AHS), 29 percent in PT Arkora Energi Baru and 17 percent in PT Arkora Tenaga. Sun.

Second, about 37 percent will be used to pay off short-term obligations.

ARKO's shares will be listed on the IDX on July 8, 2022. Aldo hopes to receive an effective statement from the Financial Services Authority (OJK) for an IPO on June 30, 2022.

Acting as the implementing underwriter for ARKO's IPO, namely PT Lotus Andalan Sekuritas and PT Mirae Asset Sekuritas Indonesia.

Going forward, Aldo believes the EBT business still has great potential in Indonesia, even in mature technologies such as hydro, solar and wind. The presence of hydro is already competitive with coal-fired power plants. The utilization of NRE potential is still far below 10 percent.

With experience in the NRE field, Arkora Hydro plans to look for acquisition opportunities. Not only that, the company is also actively looking for hydro projects with large potentials above 25 MW.

Arkora Hydro has completed the construction of the Cikopo-2 mini hydro project with a total cost of 1.65 million US dollars per MW.

In addition, the Tomasa project will cost an investment of US$1.75 million per MW. This investment cost is below the industry average of US$2.2 - 2.5 million per MW. The Tomasa project is a power plant with a capacity of 10 (2x5) MW.

The project belongs to Arkora Hydro through its subsidiary, PT Akora South Sulawesi. The Tomasa project entered the commercial operations date (COD) stage in March 2020.

The Yaentu project in Poso (Central Sulawesi) is currently under construction. The Yaentu project with a capacity of 10 (2x5) MW was developed by PT Arkora Hydro Sulawesi (AHS), an indirect subsidiary of Arkora Hydro.

"This project is in progress. Until March 2022, the project construction process has reached 50 percent. This project is targeted to enter the COD stage in the first quarter of 2023," said Aldo.