Barito Renewables to Raise $203 Million in IPO Priced at Top End
PT Barito Renewables Energy, owned by Indonesian billionaire Prajogo Pangestu, is set to raise 3.13 trillion rupiah ($203 million) through an initial public offering (IPO) in Jakarta. The company, with PT Barito Pacific as its main shareholder, priced its shares at 780 rupiah apiece, the top end of the price range. This IPO adds to the strong lineup of IPOs in Indonesia this year, with proceeds reaching $3.2 billion, more than double the amount raised during the same period last year.
Utilizing IPO Proceeds
Barito Renewables plans to use the funds to partially repay debt to Bangkok Bank Pcl and acquire geothermal power plants in Java. As Indonesia's largest geothermal power producer and the third-largest globally by installed capacity, the company has seen its revenue driven by electricity and steam sales to PLN, the state utility firm.
Growth and Profitability
Analysts note that Barito Renewables has experienced rising profitability over time, with a track record of success. The company's IPO is expected to commence trading in Jakarta on October 9, with PT BNI Sekuritas and PT OCBC Sekuritas Indonesia serving as underwriters. This IPO reflects the growing interest and investment in renewable energy in Indonesia and contributes to the country's efforts to expand its clean energy sector.
Implications of Barito Renewables' IPO for New Businesses
The upcoming initial public offering (IPO) of PT Barito Renewables Energy, set to raise $203 million, offers a compelling "hot take" on the potential impact on new businesses. This IPO, priced at the top end, is part of a strong lineup of IPOs in Indonesia this year, with proceeds more than doubling compared to the same period last year.
Investment Opportunities and Market Confidence
The successful launch of such a significant IPO could boost market confidence and create investment opportunities for new businesses, particularly in the renewable energy sector. It signals a robust interest in renewable energy, a sector that is rapidly growing and attracting significant investments.
Role Model for Growth and Profitability
Barito Renewables' track record of rising profitability and successful growth strategies can serve as a blueprint for new businesses. The company's strategic use of IPO proceeds to repay debt and acquire assets demonstrates a prudent approach to financial management and growth.
Contribution to Clean Energy Expansion
Lastly, Barito Renewables' IPO underscores the critical role businesses play in expanding the clean energy sector. New businesses can take inspiration from this, recognizing the potential profitability and societal benefits of investing in clean, renewable energy sources.