Friday, February 23, 2024

Arkora Hydro goes public on IDX, to raise IDR179.77b

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Gusty da Costa





Renewable energy firm PT Arkora Hydro Tbk officially listed its shares on the Indonesia Stock Exchange (IDX) trading board, planning for an initial public offering (IPO) through the issuance of 579.9 million new shares. The new shares represented 20% of its capital after the IPO.

With the price of between IDR286 and IDR310 per share, the company is projected to raise fund of IDR179.77 billion in the IPO.

The Financial Services Authority (OJK) was slated to announce the IPO on June 30, 2022.

PT Lotus Andalan Sekuritas and PT Mirae Assets Sekuritas Indonesia will act as underwriters for the IPO.

In conjunction with its IPO plan, Arkora plans to add equity participation to its subsidiary by taking around 63% of the proceeds. At the same time, 37% of the funds will be used to settle the company’s debt to its shareholders.

The equity participation will be approximately 54% for PT Arkora Hydro Sulawesi (AHS), a subsidiary of the company that operates mini-hydro power plant in Poso, Central Sulawesi. Arkora has been investing in the subsidiary since 2011.

“The company may add to the AHS to meet its need for further funds to construct the Yaentu mini-hydro power plant, which is currently in the construction phase and should be operating by 2023,” the company’s management said in its prospectus on June 20, 2022.

The remaining 29% of the fund will go to the company’s subsidiary, PT Arkora Energi Baru, which operates a mini-hydro power plant. The company has been investing in the subsidiary since 2012. The equity will be used for the construction of the Kukusan 2 mini-hydro power plant in Lampung province. The power plant construction is to kick off in 2022 and to operate in 2024.

A total of 17% of the fund will be used as equity for PT Arkora Tenaga Matahari, the company’s subsidiary in solar power plants.

Gusty da Costa






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