Shares of PT Barito Renewables Energy Tbk rose to 975 rupiah apiece—up 25% from their IPO price of 780 rupiah apiece—in their debut on the Indonesia Stock Exchange (IDX) on Monday.
The 25% surge in the share price is the upper limit permitted for the stock on listing day, meaning shares cannot change hands above the upper limit price.
Barito Renewables Energy had raised 3.13 trillion rupiah (nearly $200 million) in its initial share sale. More than 4 billion shares were sold to the public, representing just 3% of the company,
The company plans to use the IPO proceeds to repay its debt to Bangkok Bank ($127.8 million) and Star Energy ($66.5 million), and also provide a refund for a downpayment to Star Energy ($6 million), which is a subsidiary of Barito Renewables Energy.
Hendra Soetjipto Tan, CEO of Barito Renewables Energy said that the IPO was oversubscribed 132.5 times. “We are delighted that Barito Renewables can attract partners, and investors to support Indonesia’s net energy emission in 2060,” he said in the statement.
Barito Pacific is the majority shareholder of Barito Renewables Energy with a 66.67% stake. The rest is owned by Green Era Energy (24.33%), Jupiter Tiger Holdings (4.5%), and Prime Hill Fund (4.5%).
After the IPO, the ownership of Barito Pacific will fall to 64.67%, while that of Green Era Energy will be 23.61%. Jupiter Tiger Holdings and Prime Hill Fund will own a 4.36% stake each after the company’s initial share sale.
Barito Renewables Energy’s profits in the first quarter of 2023 stood at $29.24 million, up 31% year-on-year from $22.33 million. Its revenue stood at $147.08 million in Q1 2023, up 10% from $133.65 million in the year-ago quarter.
Tan explained that in the future Barito Renewables will keep expanding its renewable energy portfolio domestically and globally. The company so far has three geothermal power plant projects and is expanding its capacities, including Wayang Windu with a planned capacity of 230.5 megawatts, Salak of 381 megawatts, and Darajat of 274.5 megawatts.
DealStreetAsia reported earlier that Barito Renewables was looking for funding to increase its stake in Star Energy Geothermal, a provider of energy to the Salak-Darajat geothermal power plant, to 100%. Currently, Barito, through Star Energy Group Holding Pte Ltd, owns an 80.2% stake in Star Energy Geothermal. The rest is owned by Acehi Netherlands BV.
Founded in 1979 by Prajogo Pangestu, Barito Pacific mainly focuses on energy and petrochemicals.
In petrochemicals, Barito owns PT Chandra Asri Petrochemical Tbk with Thailand’s SCG Chemicals Public Company Limited. While, in energy, Barito, through Star Energy, operates geothermal assets with a combined capacity of 875 MW.
In the first half of 2023, Barito Pacific recorded a net profit of $82 million, up 173.3% compared with $30 million clocked in the same period last year. This was despite revenue in H1 2023 falling 15.1% to $1.37 million given the volatile supply and demand in the petrochemicals sector.
The listing of Barito Renewables Energy has added to the growing number of listings in Indonesia this year. IDX has added 69 new listed companies this year. They raised a cumulative 52.81 trillion rupiah. Twenty-eight other companies are lined up for an IPO, with 10 of them being big companies with assets over 250 billion rupiah.
