Jakarta.  In less than two months after its initial public offering, Barito Renewables Energy (BREN), a geothermal company owned by conglomerate Prajogo Pangestu, has claimed the top position in the list of companies with the highest market capitalization on the Indonesia Stock Exchange (IDX), surpassing Bank Central Asia Tbk (BBCA).

During early trading on Friday, BREN's stock price briefly reached Rp 8,150, propelling its market capitalization to Rp 1.09 trillion, thereby outperforming BCA with a market cap of Rp 1.08 trillion at the same juncture. At Friday's closing, BREN's market cap reached Rp 1.077 trillion, while BBCA stood at Rp 1.068 trillion.

The company recently went public on Oct. 9, 2023, for Rp 780 per share. Notably, within less than two months, BREN's shares have witnessed an impressive surge, increasing by 932 percent.

"In terms of valuation, BREN's IPO offering at the maximum price of Rp 780 reflects a 70x PE [price-to-earning ratio] and 15x PBV [price-to-book value], which is considered very expensive and super-premium," said NH Korindo Sekuritas Indonesia Analyst Leonardo Lijuwardi.

In the ranking of the top three companies with the largest market capitalization, Bank Rakyat Indonesia (BBRI) is in third place with a market cap of Rp 813 trillion. Meanwhile, Bayan Resources (BYAN) is in fourth place with a market cap of Rp 631 trillion, and Bank Mandiri (BMRI) is in fifth place with a market cap of Rp 526 trillion.

Barito Renewables' increasing market capitalization has elevated its owner, Prajogo Pangestu of the Barito Group, to become the wealthiest individual in Indonesia and secure the 27th position on the global billionaires' list. This places him one spot ahead of Zhang Yiming, the founder of ByteDance, the Chinese technology company behind TikTok.

As per Forbes' Real-Time Billionaires List, Prajogo Pangestu now possesses a fortune of US$ 43.6 billion (Rp 677 trillion), while Zhang Yiming's net worth stands at US$ 43.4 billion.

The surge in BREN's stock price and market cap on Friday is tied to the acquisition of a wind power plant (PLTB) in Sidenreng Rappang Regency (Sidrap), South Sulawesi. Barito Wind Energy, a subsidiary of BREN, reached a preliminary agreement with UPC Renewables Asia Pacific Holdings Pte Ltd and ACEN Renewables Pte Ltd to acquire 100% of the shares of UPC Sidrap Bayu Energy (Sidrap).

This agreement opens the door for the acquisition of Indonesia's first wind power plant, Sidrap, located in South Sulawesi, with a capacity of 75 MW. The acquisition value was not disclosed by BREN.

This strategic move also includes the acquisition of PT Operation and Maintenance Indonesia (OMI), which plays a crucial role in supporting Sidrap's operations. The transaction is expected to be completed in the first quarter of 2024, considering the requirements and approval from the State Electricity Company (PLN).

In the first quarter of 2023, the company produced electricity amounting to 1,294 GWh and steam of 481 GWh from three Geothermal Working Areas (WKP), each with an installed capacity exceeding 200 MW. As a result, the total installed capacity reached 885 MW.

"With such a capacity, Barito Renewables is not only the largest geothermal operator in Indonesia but also one of the largest geothermal players in the world," wrote analysts from Samuel Sekuritas, Muhammad Farras Farhan, and Research Associate Laurencia Hiemas in their research.

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