Renewable Energy Firm Hero Global Investment Eyes Rp 299 Billion IPO
Jakarta. Renewable energy company Hero Global Investment is gearing up for its initial public offering (IPO), offering up to 1.3 billion shares, or 20 percent of its total equity. The company has set an initial price range of Rp 200-230 per share, potentially raising up to Rp 299 billion ($18.58 million).
The bookbuilding period for the IPO will run from December 18 to December 23, 2024. OCBC Sekuritas and UOB Kay Hian Sekuritas will serve as joint underwriters. The shares are expected to be listed on the Indonesia Stock Exchange (IDX) on Jan. 9, 2025, under the ticker HGII.
Hero Global Investment focuses on renewable energy, producing sustainable power through long-term partnerships and power purchase agreements with PLN as an independent power producer (IPP).
The company currently owns and operates several power plants, including micro-hydro plants PLTM Parmonangan 1 and 2, as well as a biogas power plant in Ujung Batu.
Looking ahead, HGII plans to expand its renewable energy projects through its subsidiaries and investments, including hydroelectric, biomass, biogas, and solar power plants.
According to the company’s prospectus, approximately 66 percent of the IPO proceeds will be used for capital contributions to its subsidiary, Siantar Sitanduk Energi (SSE). These funds will support SSE’s capital expenditures and working capital. About 90.9 percent of the capital expenditure will be allocated to developing a 25 MW hydroelectric power plant in North Sumatra, while the remaining 9.1 percent will be used for working capital.
In addition, 31 percent of the funds will be used for capital contributions to Multiprima Hidro Energi (MHE), which will direct 80.6 percent of its funds toward the development of a 10 MW mini-hydro power plant in North Sumatra. The rest will be used for working capital.
Hero Global will allocate 3 percent of the proceeds as working capital to support its primary business operations, including exploration activities and initial feasibility studies for future investments.
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