Pertamina Geothermal raises $597 million with IPO
The capital raised by Pertamina Geothermal Energy from the IPO will go towards capacity expansion of the company's geothermal working areas.
Pertamina Geothermal Energy (PGE) has raised USD 597.17 million following the state-owned geothermal developer’s initial public offering (IPO) in the Indonesia Stock Exchange. 10.35 billions shares were sold during the IPO, corresponding to 25% of the company’s enlarged share capital.
There have been talks of PGE doing an IPO since back in 2021, but these plans finally pushed through on the start of February 2023. Shares were sold at a range of 875 to 880 rupiah per share.
PGE intends to use most of the capital raised in the IPO for capacity expansion efforts in their geothermal working areas. The state-owned developer has announced plans of doubling its geothermal capacity by 2027-2028. The estimated cost of this venture will be about USD 4 billion.
Shortly after the start of the IPO, Indonesia’s Ministry of Energy and Mineral Resources (MEMR) announced that PGE had participated in the bidding of two geothermal working areas (WKP) – the first time in several years that PGE had participated in a tender.