Two Indonesian firms — fintech company PT Akseleran Usaha Indonesia (Akseleran) and state-owned upstream oil firm PT Pertamina Hulu Energi — have scrapped plans for an initial public offering (IPO), citing market conditions and lack of strategic investors.
Pertamina Hulu Energi has postponed its IPO plan due to fluctuating oil prices and market uncertainty, Kartika Wirjoatmodjo, Vice Minister of State-Owned Enterprises, told local media on Wednesday.
The development has dashed Indonesia’s hopes of witnessing the biggest IPO this year. Nikkei Asia reported earlier this month that with an estimated market capitalisation of $17-20 billion and a plan to release at least 5% of its shares to the public, the Pertamina unit’s IPO fundraise could surpass $1 billion and become the biggest on the IDX this year.
Before Pertamina Hulu Energi, another Pertamina subsidiary — PT Pertamina Geothermal Tbk — was listed on the IDX after raising 9.06 trillion rupiah ($598 million) in February.
Meanwhile, Indonesian fintech lending firm PT Akseleran Usaha Indonesia (Akseleran) has also scrapped its plan for an IPO due to uncertainty in finding strategic investors.
Ivan Tambunan, CEO and co-founder of Akseleran, said that in the current market condition, Akseleran needs more time to secure the right strategic investors that can support the company. “However, we are still pursuing the plan for an IPO until June 2024,” he told DealStreetAsia.
Akseleran has also postponed plans to acquire a multifinance firm. “We had hoped to raise money to buy a multifinance firm from the IPO,” he explained.
While preparing for the IPO, Akseleran plans to keep conducting business normally and become profitable by Q4 2023, Tambunan said.
Akseleran was planning to raise 358.62 billion rupiah ($23.84 million) in the IPO. The company planned to list 2.98 billion shares, equivalent to a 29% stake in the company, at 100-120 rupiah apiece on the IDX.
The funds from the IPO would go towards acquiring multifinance firm PT Pratama Interdana Finance (PIF) later this year. Akseleran planned to acquire PIF for 36.5 billion rupiah and inject 200 billion rupiah into it as additional capital.
Founded in 2017, Akeleran began as a fintech startup, implementing an equity crowdfunding business model. It later pivoted to a P2P lending firm to comply with regulations set by the Indonesian Financial Services Authority (OJK).
Despite the lingering effects of the pandemic, Akseleran disbursed loans worth almost 3 trillion rupiah in 2022, clocking a CAGR of 96% between 2018 and 2022.
They have the support of over 200,000 registered retail lenders on the back of multiple financial institutions that act as institutional lenders, including BCA, BRI, Bank OCBC NISP, Bank Mandiri, Bank JTrust Indonesia, and others.