Indonesia’s Pertamina geothermal unit targets raising as much as 9.78 trillion rupiah in IPO

INDONESIA’S Pertamina Geothermal Energy, a unit of state energy company Pertamina, plans to offer as much as 25 per cent of its stake in an initial public offering (IPO) this month to raise a maximum 9.78 trillion rupiah (S$860 million) in proceeds.

The shares would be offered at 820 rupiah to 945 rupiah a piece, the company said in a prospectus on Wednesday (Feb 1) and book building would be launched on the same day.

The public offering is scheduled for Feb 20-22. CSLA Sekuritas Indonesia, Credit Suisse Sekuritas Indonesia, and Mandiri Sekuritas were hired as underwriters.

Most of the proceeds from the share sale is expected to be invested into capacity expansions of its working geothermal areas, the prospectus said.

Pertamina’s chief executive last year said the company aimed to double its geothermal capacity by around 2027-2028, which may cost an estimated US$4 billion.

Indonesia is keen to tap into its geothermal resources amid efforts to cut energy imports and reduce carbon emissions. REUTERS