Indonesian billionaire’s geothermal firm surges 25% in trading debut

PT BARITO Renewables Energy jumped in its first day of trading after raising 3.13 trillion rupiah (S$273 million) in Indonesia’s fifth-biggest initial share sale this year.

The company, owned by billionaire Prajogo Pangestu, gained as much as 25 per cent to 975 rupiah in Jakarta trading on Monday (Oct 9). The initial public offering (IPO) was priced at 780 rupiah, the top of its marketed range.

About 4 billion shares were sold in the offering that was oversubscribed by more than 135 times, according to a statement on Monday.

The listing adds to a strong lineup of IPOs in South-east Asia’s largest economy this year, taking the proceeds to US$3.44 billion in total since the start of 2023.

It is the second geothermal power producer this year to list in the country, which is pushing for more investments in renewable energy. Indonesia, the world’s largest thermal coal exporter, wants to cut reliance on fossil fuels and meet its net zero emission goal by 2060.

PT Barito Pacific, which owns 64.67 per cent of the company, fell 2.6 per cent on Monday, while affiliated coal miner PT Petrindo Jaya Kreasi rose as much as 2.6 per cent. BLOOMBERG