Following PGEO, Pertamina Hulu Energi Will Hold IPO This Year

Illustration (Photo: Doc. Antara)

JAKARTA - PT Pertamina Hulu Energi (PHE), a subsidiary of Pertamina, will follow PT Pertamina Geothermal Energi Tbk (PGEO) to take the floor on the Indonesia Stock Exchange (IDX) in semester I-2023.

The Special Staff (Stafsus) of the Minister of BUMN, Arya Sinulingga, revealed that the fresh funds collected by PHE from the capital market would be greater than those obtained by PGOE.

Meanwhile, PGOE was able to reap Rp9.05 trillion in fresh funds on the capital market. This fund will be allocated as capital expenditure for the development of green investment in the country.

"PHE is targeted for IPO in the first semester (2023). This PHE is bigger than PGE," he told journalists in Bandung, West Java, written on Tuesday, March 7.

According to Arya, PHE's shares are quite potential. Even the capital market investors have been waiting for.

Arya is optimistic that the targeted fresh funds can be obtained. But unfortunately, Arya was reluctant to mention the nominal target to be set.

“This PHE is a good item on the stock exchange. Because there are jumbos on the stock exchange,” he explained.

For your information, PT Pertamina Hulu Energi's planned initial public offering (IPO) has been postponed from the original schedule for the first quarter of 2022. This is because PHE is still waiting for the fourth quarter of 2022 financial reports.

Arya explained that PHE needed to obtain an injection of funds to support business expansion. This is because, if not, imports of fuel oil (BBM) will swell.

"Only what percentage of our oil is domestically. If PHE doesn't expand, demand for oil increases and so on, production will definitely fall this semester, so there's a high probability of imports. So PHE must expand. If expansion, where will the funds come from? IPOs,” he explained.

Minister of State-Owned Enterprises (BUMN) Erick Thohir previously revealed that his party would encourage Pertamina's subsidiary Pertamina Hulu Energi (PHE) to conduct an initial public offering (IPO).

For this reason, continued Erick, the Ministry of BUMN will propose a gradual IPO of PHE to the stock exchange.

"We are proposing to go to the stock exchange in stages because the emissions are huge. The valuation is billion billion billion. I can't tell you yet," said Erick who was met at the Indonesia Stock Exchange, Monday, February 27.

Erick continued, he hoped that later the fresh funds raised by PHE would be used to dredge new wells and develop existing wells with new technology and systems.

Just to note, PT Pertamina Geothermal Energy Tbk officially listed its shares for trading on the Main Board of the Indonesian Stock Exchange (IDX) with the stock code PGEO.

PGEO set an IPO price of IDR 875 per share.

During its initial share trade, PGEO's shares had strengthened to a level of IDR 925 and touched the lowest price at IDR 815.

The Company is offering to the public 10,350,000,000 registered ordinary shares, which represent 25 percent of the Company's issued and paid-up capital and are offered at an Offering Price of Rp. 875 per share.

The company has carried out a public offering from 20–22 February 2023 and managed to raise funds of IDR 9,056,250,000,000.

The Company also allocates a maximum of 1.50 percent of the issued and fully paid capital after the Initial Public Offering or a maximum of 630,398,000 shares for the Share Purchase Option Program for the Company's Management and Employees (MESOP).

"The proceeds will be used to contribute to and grow geothermal installed capacity and position PGE as a leader in the development of geothermal resources," said the Main Director of PT Pertamina Geothermal Energy Tbk. Ahmad Yuniarto in his remarks at the Indonesia Stock Exchange, Friday, 24 February.