Fund raising: SOEs proceed with IPO
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Penggalangan dana: Aksi IPO BUMN jalan terus
14 April 2023
By: Annisa K. Saumi & Nuhansa Mikrefin
Jakarta - The initial public offering (IPO) of state-owned entities in 2023 will continue. Two of them are PT Pertamina Hulu Energi and PalmCo.
The IPO of the palm oil plantation holding PalmCo. is planned to be carried out in September 2023. Currently, the consolidation plan is to divide and merge the assets and liabilities of PTPN III (Persero) to some of its subsidiaries, which is set to be completed in September 2023.
State-owned Enterprises (SOE) Deputy Minister I Pahala Nugraha Mansury said that PTPN was currently focusing on the merging process until August 2023. The IPO process of PalmCo. is planned to be carried out in September 2023.
“We are focusing on the merging process until August,” Pahala said after the inauguration of the millennial forest in Depok on Thursday (13/4).
Moreover, PT Perkebunan Nusantara (PTPN) V, VI, and XIII will merge with PTPN IV, which will be known as PalmCo. Subholding.
Then, the second transaction of PTPN IV will receive the merger of several other subsidiaries of PT Perkebunan Nusantara. The entity will focus on managing plantations besides palm oil and incubating new businesses, such as asset management and the green industry.
The merger is expected to accelerate the development of renewable energy through biofuel production, which will reduce energy import and decarbonisation.
PTPN III (Persero) is targeting the IPO of PalmCo. to raise up to Rp8 trillion. Funds from the IPO will be used to increase the added value of PTPN’s plantation assets.
PTPN III will also use funds from the IPO to optimise the EBITDA margin, increase the company’s equities through profitability growth, boost investment, and reduce debts.
Jumbo amount
The IPO of Pertamina’s subsidiary, PT Pertamina Hulu Energi (PHE), is approaching. The IPO is said to be the IPO with the largest issuance value in Indonesia, beating PT Bukalapak.com Tbk (BUKA).
BRI Danareksa Sekuritas Investment Banking Capital Market Director Kevin Praharyawan said that PHE’s IPO transaction was expected to be the largest in Indonesia.
“PHE’s IPO is currently still waiting for the approval process from OJK (Financial Services Authority). This transaction is expected to be the largest IPO in Indonesia,” Kevin said on Wednesday (12/4).
Previously, Pertamina’s business unit was said to carry out a roadshow in the context of the IPO at the end of last month. PHE is expected to sell 10%-15% of the shares in the public offering, so they have the potential to obtain fresh funds of US$2 billion.
The potential surpasses Bukalapak’s IPO that reaches Rp21.9 trillion that is the largest IPO in the history of Indonesia’s capital market. Moreover, throughout 2023, the largest IPO value is held by Harita Nickel’s entity, PT Trimegah Bangun Persada Tbk (NCKL), that conducted an IPO of Rp9.99 trillion.
Previously, the SOE Ministry was encouraging energy SOEs to conduct an IPO, including PT Pertamina Hulu Energi (PHE). SOE Minister Erick Thohir said that PHE’s IPO would be proposed to the exchange in stages.
“Not because the market is incapable of absorbing, but we are proposing it to the exchange in stages as it is humongous. The valuation is in the billions,” Erick said at the Indonesian Stock Exchange (IDX) building in Jakarta on Monday (27/2).
Besides SOE entities, the housing company owned by Raam Punjabi, PT Tripar Multivision Plus Tbk (RAAM), will soon be listed on the IDX. Multivision Plus is currently conducting an IPO of around Rp224-Rp250 per share.
Multivision Plus Main Commissioner Raam Punjabi said that the prospect of the film industry in Indonesia was still bright. After officially going public, he believes that Multivision Plus will be able to compete in the domestic and international film and cinema industry.
“I observed that the entertainment’s industry prospect in the future would be very convincing, especially the film industry,” he said on Wednesday (12/4).
Multivision will release 929.2 million shares or 15% of the issued capital, which will be fully paid with a nominal value of Rp60 per share. Hence, the company has the potential to raise funds from the IPO worth Rp232.3 billion.
Tripar Multivision Plus Director Amit Ramesh Jethani revealed that the company would increase content acquisitions and distribution in Indonesia and other countries to boost their performance in 2023.
