JAKARTA (TheInsiderStories) - Power producer PT Cikarang Listrindo has kicked its Initial Public Offering (IPO) process by offering 2.5 billion units of shares with price range of Rp1,430 – Rp1,970 per share that allowing the company to raise up to Rp5.02 trillion ($357 million) from the IPO.
The float represents 15 percent of Cikarang’s enlarged capital, and comprises 67 percent primary and 33 percent secondary. It also has an option to add up to an extra 804 million secondary shares.
PT Indopremier Securities, PT Citigroup Securities Indonesia, PT Deutsche Securities Indonesia, and PT UBS Securities Indonesia are acting as lead underwriters for the IPO.
Indo Premier Head of Investment Banking, Rayendra Tobing, said the international roadshow was launched in Hong Kong and will wrap up on May 26. Indonesian retail investors will have a chance to place orders between June 7-8, a week before the stock goes live on the Indonesian Stock Exchange (IDX) on June 15.
After IPO, PT Udinda Wahanatama shares will be reduced to 15 percent from 36.38 percent, PT Brasali from 31.81 percent to 25.46 percent while PT Pentakencana and Brasali Industri will each hold 22.27 percent.
The West-Java based firm is planning to use the IPO proceeds to expand its power generation capacity and other general corporate purposes. Last year, Cikarang Listrindo and General Electric inked a $600-million deal for power plant developments, during President Joko ‘Jokowi’ Widodo’s visit to the US.
In order to cope with increasing electricity demand, Cikarang Listrindo is building a new 280 megawatt coal-fired power plant that is expected to complete by the end of this year. Completion of the new plant will boost the company’s total installed capacity by 32 percent to 1,145 megawatts. (*)