PT Barito Renewables Energy, a unit of the Indonesian conglomerate PT Barito Pacific Tbk, which focuses on geothermal energy, is said to be looking to raise over 1 trillion rupiah ($65 million) in a local IPO this year, according to local media reports.
The company is reportedly waiting for the IPO’s approval from Indonesia’s financial services regulator (OJK). “They have finalised the first step of the approval process and are waiting for the second step that needs 10 days to be completed,” E Agung Setiawati, CEO of Datindo Entrycom, securities administration bureau of listed company candidates, told local media.
Setiawati declined to divulge details of the IPO, including the size.
Barito Renewables Energy is also reportedly looking for funding to increase its stake in Star Energy Geothermal BV, a provider of Salak-Darajat’s geothermal power plant, to 100%. Currently, Barito, through Star Energy Group Holding Pte Ltd, owns an 80.2% stake in Star Energy Geothermal BV. 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 instability of global supply and demand in the petrochemicals sector.
The reported IPO of Barito Renewables Energy will add to the growing number listings in Indonesia this year. IDX has added 64 new listed companies this year . They raised a cumulative 49.2 trillion rupiah. Twenty-six other companies are lined up for an IPO, with seven of them being big companies with assets over 250 billion rupiah.