Renewable energy company PT Hero Global Investment (HGII) will hold an initial public offering (IPO), with 1.3 billion shares on offer targeting fresh funds of Rp299 billion (US$18.5 million).

The number of shares offered is equivalent to 20 percent of the company's issued and fully paid-up capital after the initial public offering of shares with a nominal value of Rp25 per share. The offering price offered to the public is Rp200 to Rp230.

According to the prospectus, around 66 percent will be used by Hero Global Investment to make capital deposits to its subsidiary, PT Siantar Sitanduk Energi (SSE).

Then SSE will use 90.9 percent for capital expenditure and working capital, for the development of a hydroelectric power plant (PLTA) business with a capacity of around 25 Megawatts (MW) in the North Sumatra region (SS Project).

"Then around 9.1 percent as working capital for the SS project after winning the Procurement of Electricity Purchase (PPTL) in the North Sumatra region, where SSE will participate in the PPTL tender," the prospectus said as quoted on Wednesday, December 18, 2024.

Around 31 percent will be used by Hero Global Investment to make capital deposits to its subsidiary, PT Multiprima Hidro Energi (MHE). Then it will be used by MHE for capital expenditures and working capital.

Around 80.6 percent as capital expenditure for the development of the Mini-Hydro Power Plant (PLTM) business with a capacity of 10MW in the North Sumatra region (LO Project).

Around 19.4 percent as working capital for the LO project after winning the PPTL in the North Sumatra region, with MHE participating in the PPTL.

Three percent will be used as the company's working capital in order to support the main business activities of the Company Group to pay for the company's operational costs. Including and not limited to supporting exploration activities up to the pre-feasibility study in connection with determining investment.

Ownership structure

From the share ownership structure, HGII has a plan to transfer part of the controlling share ownership. After the IPO, HGII's controlling shareholders, namely Rudy Chandra, Hendrianto Thamrin, and Robert Njo, will jointly own 80 percent of the issued and fully paid-up capital.

Rudy Chandra owns 27.20 percent, while Hendrianto Thamrin and Robert Njo each hold 26.40 percent of HGII's shares. The controlling shareholders have signed a Conditional Share Sale and Purchase Agreement (PPJB) dated Friday, November 8, 2024 with SEP International Netherlands B.V. (SEPI), which is a wholly owned subsidiary of Shikoku Electric Power Company, Inc (Yonden).

With this transaction plan, SEPI will later hold 25 percent of HGII shares. Thus, the HGII share ownership structure after the offering and transaction implementation will be owned by Rudy Chandra as much as 18.70 percent, Robert Njo (18.15 percent), Hendrianto Thamrin (18.15 percent), SEPI has 25 percent, and 20 percent of HGII shares will be owned by the public.

IPO schedule:

• Initial offering period: December 18-23, 2024; - Estimated effective date: Tuesday, December 31, 2024;

• Estimated initial public offering period: January, 3-7, 2025;

• Estimated allotment date: Tuesday, January 7, 2025; - Estimated electronic distribution date of shares: Wednesday, January 8, 2025.

• Estimated listing date on the Indonesia Stock Exchange: Thursday, January 9, 2025.