After raising 9.06 trillion rupiah ($595.47 million) in the nation’s largest listing in nearly a year, Pertamina Geothermal Energy (PGEO.JK), a division of state energy company Pertamina Indonesia, experienced a 6.9% drop in its trading debut on Friday.
On the Indonesian stock market, the stock initially traded at a premium of 5.7% to its IPO price of 875 rupiah per share before falling as much as 6.9% to 815 rupiah per share.
The poor start might dampen enthusiasm for this year’s planned Indonesian IPOs. The main company of Pertamina Geothermal, Pertamina (PERTM.UL), also intends to list Pertamina Hulu Energy as an initial public offering (IPO).
According to sources cited by Reuters last month, the state-owned fertilizer company Pupuk Kalimantan Timur (PUPUK.UL) in Indonesia has plans for an IPO that could generate $500 million this year.
The $1.1 billion listing of the tech company GoTo (GOTO.JK) in April was followed by the biggest IPO in Indonesia in nearly a year with Pertamina Geothermal. GoTo’s stock has also performed poorly, with share values falling more than 60% since its IPO.
According to its IPO prospectus, Pertamina Geothermal sold 10.35 billion shares, or 25% of its enlarged share capital, and intended to use the majority of the profits to increase the capacity of its operational geothermal areas.
Pertamina plans to double its geothermal output by 2027–2028, which could cost as much as $4 billion. At the same time, the IPO will take place. The biggest economy in Southeast Asia, Indonesia, is eager to use its geothermal resources to decrease carbon emissions and energy imports.
(1 dollar equals 15,215,00 rupiah)