Breaking News – Indonesia plans$500m IPO for geothermal holding company
Ulubelu geothermal area, Lampung, Indonesia (source: Pertamina Geothermal Energy)
Alexander Richter
3 Mar 2021
With a planned merger of state-owned geothermal companies PT Geo Dipa Energi, PT Pertamina Geothermal Energy and PT PLN Gas and Geothermal, plans now emerge on an IPO targeting an investment volume of around $500 million.
Over the past couple of weeks, we have reported on plans by the Indonesian government to create a holding company that would bundle the geothermal subsidiaries of state-owned Pertamina and PLN, as well as the state-owned PT Geo Dipa Energi. At the same time, PT Pertamina had announced plans to launch an IPO of some of its subsidiaries, including PT Pertamina Geothermal Energy.
Now things seem to have taken a turn. As reported by Bloomberg this morning, efforts are more concrete and include the plan to launch an IPO for the Geothermal Holding company valued at $500 million.
Financial advisors are said to be working full force on these plans which could see a complete merger in three months time and the IPO as soon as the end of 2021.
With the IPO the target is to raise $500 million. Discussions are ongoing on how to merge the entities of PT Geo Dipa Energi, PT Pertamina Geothermal Energy and PT PLN Gas and Geothermal. With around 1,020 MW these companies represent about half of the total installed geothermal power generation capacity.
Source: Bloomberg
