IPO of Cikarang Listrindo on the Indonesia Stock Exchange

By raising IDR 2.4 trillion through the IPO, Cikarang Listrindo also became the largest IPO in Indonesia so far in 2016. The company's IPO was a success as investors have become optimistic about Indonesia's energy sector. The Indonesian government is committed to achieve its ambitious 35,000 MW program (implying that by 2019 the nation will see an additional 35,000 MW of power capacity).

Underwriters for the IPO of Cikarang Listrindo were Citigroup Securities Indonesia, Deutsche Securities Indonesia, Indopremier Securities, and UBS Securities Indonesia. Indopremier Securities said 75 percent of the shares offered through the IPO were purchased by foreign investors from Asia and the USA (mostly institutional investors), while the remaining 25 percent were absorbed by domestic investors.

Christanto Pranata, Finance Director at Cikarang Listrindo, said the company will use 70 percent of the IPO proceeds for capital expenditure (to build additional power generation capacity), while the remainder goes to corporate cash to cover operational costs. Apart from the IPO, existing shareholders Udinda Wahanatama, Brasali Industri Pratama, and Pentakencana Pakarperdana also divested a five percent stake to strategic investors. If added to the IPO proceeds, it means some IDR 3.6 trillion (approx. USD $271 million) in new funds were collected.

Cikarang Listrindo currently operates two gas-fired power plants (864 MW and 218 MW) in Jababeka and Cikarang, supplying electricity to over 2,000 companies on five industrial estates east of Indonesia's capital city of Jakarta. The power producer is now also constructing two coal-fired power plants - both with a 140 MW capacity - in Bekasi (West Java). These power plants should be completed by the fourth quarter of 2016 and will supply electricity to the five industrial zones.

Cikarang Listrindo is one of the firms under control of the Brasali Group, a property developer controlled by the Iwan and Aldo Brasali brothers. Other companies that are part of this group include Metropolitan Kentjana (owner and operator of the Pondok Indah and Puri Indah malls in Jakarta), and Metropolitan Land (a property developer).

Stock Quote Cikarang Listrindo - POWR:

Together with partner General Electric (GE), Cikarang Listrindo will invest in the development of a USD $800 million gas-fired power plant in Cikarang (West Java), This plant is expected to have a power capacity of up to 1,400 MW. Both companies had already sign an agreement in October 2015 for the development of this plant. The plant will sell its output to state-owned electricity company Perusahaan Listrik Negara (PLN). Both sides are still negotiating about the power purchase agreement.

The Indonesia Stock Exchange (IDX) targets to see 35 companies to go public this year. This may be a too ambitious target as only five companies have conducted an IPO in Indonesia so far in 2016:

Last Update: 29 Mar 2021

IPOs on the Indonesia Stock Exchange up to 14 June 2016

Company	P: 29 Mar 2021	P: 28 Mar 2021	Gain/Loss	P/E ttm	Yield %	Gain/Loss YTD
Bank Artos IndonesiaARTO	10,050	9,900	1.52%	N/A	0.00%	79.46%
Mitra PemudaMTRA	244	244	0.00%	N/A	0.00%	0.00%
Mahaka Radio Integra Tbk.MARI	256	254	0.79%	N/A	0.00%	187.64%
Bank Ganesha Tbk.BGTG	146	156	-6.41%	N/A	0.00%	102.78%
Cikarang Listrindo Tbk.POWR	700	695	0.72%	N/A	0.00%	-12.50%
Combined Total	11,396	11,249	1.31%			67.47%

Green colour indicates upward movement Red colour indicates downward movement P = price; E = earnings; D = dividend; Yield = D/P "N/A" indicates P/E < 0 (negative earnings) "-" indicates E,D,P or YTD is not available

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