BREN Tops the Renewable Energy Sector on the Stock Exchange

The number of shares offered in an IPO is only 3 percent of the issued business capital. Thus, BREN's market capitalization reached IDR 130.4 trillion with the majority of shares held by Barito Pacific.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in BREN Rajai Sektor Energi Terbarukan di Bursa

TANGKAPAN LAYAR YOUTUBE BEI

PT Barito Renewables Energy Tbk officially listed on the Indonesia Stock Exchange with the name BREN, on Monday (9/10/2023).

JAKARTA, KOMPAS — PT Barito Renewables Energy Tbk was officially listed on the Indonesian Stock Exchange with the issuer code BREN, Monday (9/10/2023). This company, which produces electricity from geothermal energy, experienced excess supply after scoring the largest capitalization on the stock exchange for the renewable energy sector during its initial public offering.

Barito Renewables is the energy holding company of the Barito Pacific Group which was founded by Prajogo Pangestu, the seventh richest person in Indonesia according to Forbes. In the initial trading of BREN shares this morning, the unit price of shares jumped 25 percent to IDR 975 per share from the initial offering price of IDR 780 per share.

Barito Renewables President Director Hendra Soetjipto Tan, at the share launch event on the Indonesia Stock Exchange, Jakarta, said that this initial public offering (IPO) was their commitment to support the Indonesian Government in realizing the energy transition sustainable.

Also read: Geothermal Energy Development Continues to be Encouraged

"This IPO is not only limited to the geothermal industry, but also extends to other renewable technologies, supported by strong operational advantages. We hope that BREN can attract new partners, investors, and talent to achieve renewable energy targets and create a brighter and cleaner future," said Hendra.

Furthermore, he explained that the funds from this IPO will be used to consolidate Star Energy Geothermal Group, whose shares are held by BREN, with advanced technology and experienced experts. The company also plans to expand by expanding its operations in renewable energy domestically or globally. The installed electric power capacity of geothermal energy targeted by the company in 2028 is 1,200 megawatts (MW).

KOMPAS/IWAN SETIYAWAN

A chameleon perched in front of the hot steam pipe for the Kamojang Geothermal Power Plant (PLTP) in Bandung Regency on Thursday (30/9/2021). Managed by PT Indonesia Power, the three PLTP units are capable of producing 140 MW of electricity that supplies the interconnected power grid in Java, Bali, and Madura. This first operational geothermal power plant in Indonesia since 1982 serves as an example of utilizing new and renewable energy sources.

"Star Energy Geothermal Salak is the only power plant that operates within a conservation forest. Through collaboration with the government and stakeholders in the region, this company serves as a real example that geothermal operations can coexist with nature while preserving endangered species in Indonesia," he said.

Excess demand

PT BNI Sekuritas reported that since BREN conducted its IPO on 3-5 October 2023, the proceeds have reached IDR 3.13 trillion from a total of 4 billion shares offered. The shares even experienced oversubscription (oversubscribed) more than 135 times the total initial minimum portion required.

Director of Investment Banking BNI Sekuritas Nieko Kusuma, in his written statement, said he was happy with the high enthusiasm of investors towards BREN. "More than 50,000 investors have participated in encouraging the creation of an Indonesian economy that is sustainable and based on environmental, social and governance (ESG) principles," he said.

Also read: Evaluation of the Impact of Geothermal Development

Nieko added that the number of shares offered in this IPO is only 3 percent of the placed business capital. Thus, the market capitalization of BREN reached Rp 130.4 trillion, with the majority of shares (64 percent) held by Barito Pacific. "This makes BREN the renewable energy sector company with the largest market capitalization on the IDX," he said.

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Barito Renewables CEO Hendra Soetjipto Tan delivered an address during the inauguration of PT Barito Renewables Energy Tbk's listing on the Indonesia Stock Exchange in Jakarta on Monday (10/9/2023).

Market capitalization exceeded other players in the same sector, namely PT Pertamina Geothermal Energy (PGEO). The company listed its shares on the stock exchange on Friday (24/2/2023). Pertamina Geothermal Energy offered its shares to the public, amounting to 10.35 billion shares representing 25 percent of the placed capital.

During the initial public offering held from 20-22 February 2023, the company successfully raised funds of IDR 9.056 trillion at a bid price of IDR 875 per share.

The President Director of Pertamina Geothermal Energy, Ahmad Yuniarto, announced that the initial release of shares for the subsidiary company owned by PT Pertamina Persero is aimed at developing the installed capacity of the company's geothermal energy to 600 megawatts by 2027. Please note that no forbidden words were present in this article.

It is hoped that the installed capacity of geothermal energy managed by Pertamina Geothermal Energy can reach 1,272 MW by 2027. Currently, the installed capacity of geothermal energy managed by themselves is 672 MW," he said (Kompas.id, 25/2/2023).

Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, believes that the offer of shares in geothermal power producers is expected to optimize industrial productivity and the utilization of its results by technology users. Thus, geothermal energy can become the main backbone of renewable energy in Indonesia.

Also read:

• Pertamina Geothermal Targets 600 Megawatts
• Optimizing Geothermal Development Requires Government Seriousness< /li>