World’s third-largest IPO this year is set to debut in Jakarta
PT Pertamina Geothermal Energy will begin trading in Jakarta on Friday (Feb 24) after a 9.06 trillion rupiah (S$799.8 million) initial public offering (IPO), Indonesia’s largest over the past year.
A 25 per cent per cent stake in the company is set to float after 10.35 billion shares were sold at 875 rupiah each, within the lower band of the offered range. That still makes it the second-largest IPO in Asia since the start of 2023 and the third-largest in the world.
The firm is the geothermal unit of energy company PT Pertamina and the first of a series of mid-to-large size offerings by state-owned firms expected to take place in Jakarta this year. The government of South-east Asia’s largest economy is seeking to float such firms to raise funds while reducing their reliance on the state budget.
Almost two-thirds of the 21 companies that listed in Jakarta over the past decade finished their debut session higher than the listing price, according to data compiled by Bloomberg. The average increase for those firms in their inaugural day was 11 per cent.
Prior to Pertamina Geothermal’s IPO, only four alternative-energy companies sold shares through IPOs in Indonesia since 2013, raising combined proceeds of about US$40 million, the data show.
Solid pipeline
Pertamina Geothermal’s IPO is the largest in Jakarta since GoTo Group’s US$959 million listing in April. The strong lineup of deals in the Indonesian capital this year is in contrast to a slow start in Asian hubs such as Hong Kong, Seoul and Singapore.
PT Pertamina Hulu Energi, another unit of the country’s oil and gas giant, is also expected to become public this year. The sale of stakes in Geothermal and Hulu Energi plus an offering by state palm grower PalmCo could amass US$2 billion, the size of nearly all IPO proceeds raised in the country last year.
PT CLSA Sekuritas Indonesia, Credit Suisse Group and PT Mandiri Sekuritas are the arrangers of the Geothermal IPO. BLOOMBERG
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