Indonesia's State Owned Energy Company Pertamina to Offer 25% of its Stake For IPO

Pertamina Geothermal Energy, a unit of Indonesia's state energy company Pertamina, plans to offer up to 25% of its stake in an initial public offering this month in order to raise a maximum of 9.78 trillion rupiahs ($652.00 million) in proceeds.

The company said in a prospectus on Wednesday that the shares would be offered at 820 to 945 rupiah a piece, and that book building would begin the same day.

The initial public offering is scheduled for February 20-22. Underwriters included CSLA Sekuritas Indonesia, Credit Suisse Sekuritas Indonesia, and Mandiri Sekuritas.

According to the prospectus, the majority of the proceeds from the share sale will be used to expand the capacity of its working geothermal areas.

Last year, Pertamina's CEO stated that the company aimed to double its geothermal capacity by 2027-2028, which could cost $4 billion.

Indonesia is eager to tap into its geothermal resources as part of efforts to reduce energy imports and carbon emissions.