The company has set a price of 780 rupiah (approx. USD 0.05) per share, at the upper end of the marketed 670-780 rupiah price range. The IPO is seen to raise a total of 3.13 trillion rupiah or USD 203 million. According the publish prospectus, the proceeds from the IPO will be used for debt repayment to the Bangkok Bank Pcl and to finance the purchase of geothermal power plants in Java.
PT Barito Renewables acquired Star Energy Geothermal Group in 2017/2018. Currently as a group, the company operates three geothermal assets located in West Java – Wayang Windu (230.5 MWe), Salak (381 MWe), and Darajat (274.5 MWe). Star Energy also holds the rights to explore the Gunung Hamiding prospect in North Maluku and the Suoh Sekincau prospect in Lampung.
This portfolio makes PT Barito Renewables the largest geothermal power producer in Indonesia and one of the largest globally.
“Its revenue has been primarily driven by electricity and steam sales to PLN, as Pertamina Geothermal Energy’s exclusive contractor and its profitability has been on the rise over the track-record period,” said Ethan Aw, an analyst at Aequitas Research.
Earlier this year, state-owned geothermal developer PT Pertamina Geothermal Energy also raised capital through an IPO, successfully raising USD 597.17 million. PGE had set an initial price of IDR 820 to 945 per share. This has since increased to IDR 1600 as of the end of trading on 6th October 2023. PGE intends to use most of the capital raised in the IPO for capacity expansion efforts in their geothermal working areas.
