Indika Energy IPO: Indonesia

The Indonesian companies are flooding the stock exchanges with their primary market issues. After Gozco Plantations IPO (Read Review) & Adaro IPO (Read Review), the Energy and infrastructure company Indika Energy is planning to come out with its IPO or initial public offering.


When will the Indika Energy IPO open for subscritption?
The Indika Energy IPO is expected to hit the markets sometimes early next month, i.e. from June 10 to June 12. Indika plans to list the shares on the Indonesia Stock Exchange on June 18.

What is the size of the Indika Energy IPO?
The Indika Energy IPO plans to raise approximately 2.1 Trillion Rupiah or around 230 million USD. It will sell around 18% of the Indika Energy company through the Indika Energy IPO. A total of 937 million shares will be sold.

Where will the IPO proceeds or capital raised from Indika Energy IPO be used?
Indika finance director Azis Armand said 56.6 percent of the proceeds would be used to fund an expansion in energy resource business, including potential acquisitions and the development of coal resources.
The remaining 28.2 percent, he added, would be used to expand the infrastructure business, and 15.2 percent would be used for the energy service business.

What is the price of Indika Energy IPO shares?
The Indika Energy IPO will offer its shares at a price of between Rp 2,300 and Rp 2,950.

Who are the underwriters for the Indika Energy IPO issue?
PT Danareksa Sekuritas, PT Indo Premier Securities and PT Mandiri Sekuritas as underwriters for selling the Indika Energy IPO shares. Citigroup Global Markets Limited and Deutsche Bank AG have been appointed as the company's agents outside Indonesia.

What are the financial results and business valuations of the Indika Energy IPO?
As per the news of JakarataPost, The company has subsidiaries which include coal producer PT Kideco and engineering company PT Tripatra. "We're hoping to use the proceeds to acquire a coal mine in East Kalimantan worth around US$100 million," an official said.
Indika will also use some of the proceeds to invest in a joint power plant project in Cirebon, West Java, at a cost of around $779 million.
However, the company will only spend around $47 million in the project, while the remaining costs will be financed jointly by other investors.
Indika president director M. Arsjad Rasjid said Thursday the company would sell some 937 million shares with a par value of Rp 100 each.
The company, he said, would start
Controlled by a group run by local businessmen Agus Lasmono and Wiwoho Basuki, who are linked with tycoon Sudwikatmono, Indika has appointed
Last year, Indika had assets worth more than Rp 5 trillion, with revenues of Rp 2.3 trillion and a net profit of Rp 265 billion.

The company's flagship Kideco, the country's third largest coal producer, booked $95 million of net income last year.
The unit sold 20.5 million tons of coal last year, while this year the company is expecting to sell 22 million tons at a price of between $45 and $48 per ton.

Indika has some 46 percent shares in Kideco, while the remaining 49 percent are owned by South Korea-based Samtan, and 5 percent by PT MIU. Let’s see how this IPO performs.

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