Indonesia's Pertamina Geothermal Energy debuts with USD-595m IPO

PT Pertamina Geothermal Energy Tbk (PGE), part of Indonesian state-owned energy company PT Pertamina (Persero), today made its trading debut in Jakarta through an initial public offering (IPO) that fetched IDR 9.06 trillion (USD 595.6m/EUR 555.4m).

The geothermal energy company now trades on the main board of The Indonesia Stock Exchange (IDX) under the ticker symbol “PGEO”. It offered 10.35 million shares, representing a 25% stake, at IDR 875 apiece. However, during its Friday trading debut, shares dropped as much as 6.9% to IDR 815.

According to Ahmad Yuniarto, CEO of Pertamina Geothermal Energy, a number of domestic and multinational investors have taken part in the company’s IPO, including the Indonesia Investment Authority (INA) and UAE-based renewables developer Masdar.

Data gathered by Bloomberg shows that this is Indonesia’s largest and the world’s third-largest IPO so far this year. On top of the list is another renewables-related business – US solar tracking system maker Nextracker Inc, which raised some USD 734 million (USD 694m net) in gross proceeds on Nasdaq earlier this month. The current runner-up is China’s Hunan Yuneng New Energy Battery.

PGE previously indicated that it intends to use the proceeds from the listing “in a variety of ways,” including for capital expenditures. The company currently manages 13 geothermal working areas with a combined capacity of 1,877 MW, of which 1,205 MW are managed under joint operation contracts.

As per its own operations, PGE manages six geothermal power plants totalling 672 MW, as shown in the table below. The company’s goal is to increase its own installed capacity to 1,272 MW by 2027.

(IDR 10,000 = USD 0.658/EUR 0.613)

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