Indonesian Billionaire’s Geothermal Firm Surges 25% in Trading Debut

(Bloomberg) -- PT Barito Renewables Energy jumped on its first day of trading after raising 3.13 trillion rupiah ($200 million) in Indonesia’s fifth-biggest initial share sale this year. 

Shares of the company owned by billionaire Prajogo Pangestu finished 25% higher at 975 rupiah in Jakarta on Monday, hitting the upper limit allowed on the Indonesian stock exchange. The 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.

Barito Renewables posted the best first-day performance among six companies that raised more than $100 million through listings in Indonesia since the start of the year, Bloomberg-compiled data show. It adds to a strong lineup of IPOs in Southeast Asia’s largest economy this year, where proceeds for 2023 have reached $3.44 billion.

The company “has great operational track record, robust long-term sales contracts providing for stable margins and cash flows, along with strong growth opportunities from its expansion plans,” said Mohit Mirpuri, a senior partner at Singapore-based SGMC Capital, which invests in Indonesian IPOs. 

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. 

The company will use the proceeds to partially repay debt to Bangkok Bank Pcl and to buy geothermal power plants in Java, according to the prospectus of the offering. 

“We hope that this initial listing can become a new benchmark for valuation of renewable energy companies in Indonesia and encourage more renewable firms to list on the IDX,” Chief Executive Officer Hendra Soetjipto Tan said on Monday. 

PT Barito Pacific, which owns 64.67% of the company, fell 4.8% on Monday, while affiliated coal miner PT Petrindo Jaya Kreasi rose 1.1%. 

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