“Pertamina’s Subsidiary PHE to Raise IDR 20 Trillion in Southeast Asia’s Largest IPO Plan”

Jakarta –

Pertamina Hulu Energi (PHE) plans to enter the stock exchange. This subsidiary of PT Pertamina (Persero) is eyeing fresh funds of IDR 20 trillion.

Quoting Reuters, Saturday (29/4/2023), PHE’s initial public offering (IPO/Initial Public Offering) will take place in June 2023 and will be the largest in Southeast Asia. Saturday (29/4/2023), PHE previously postponed its IPO plan due to administrative problems.

PHE’s IPO plan is happening concurrently amidst the Indonesian government’s push to privatize several BUMNs, and to increase energy security.

With Rp 20 trillion or around US$ 1.6 billion in funding, the IPO will exceed the US$ 680 million amount from Indonesian nickel company PT Trimegah Bangun Persada (NCKL.JK) on April 12.

The last time Indonesia conducted an IPO of more than US$ 1 billion was in April 2022, with the listing of technology company GoTo (GOTO.JK).

The Indonesian IPO market has raised US$ 1.58 billion so far this year, or second place after China in the Asia-Pacific region. This data does not include Japan and Hong Kong, according to Refinitiv data.

PHE plans to use the funds to expand oil production through the acquisition or drilling of new wells. The source with knowledge of the plans declined to be identified as he is not authorized to speak publicly about the matter.

The company also declined to comment. PHE is expected to sell a 10% to 15% stake in the offering, a minister said in December.

(hns/hns)