SOE’s IPO PROSPECTS 2023
The government has just announced plans for an IPO of 4 SOEs in 2023. The four SOEs are Pertamina Geothermal Energy (PGE), Pertamina Hulu Energi (PHE), PalmCo (a subsidiary of Holding plantation –PTPN) and also Pupuk Kalimantan Timur (PKT). The aim is to obtain alternative funding for the planned business expansion that will be executed.
Seeing the prospect of going public with this state-owned company, of course, the fundamental aspects of the issuer candidate must be considered as well as global and national macroeconomic conditions that can influence it. Fundamentally, investors will see whether the prospects for the SOEs to be IPO have enough business potential. This means whether the company has had good performance in the past and also has good prospects in the future.
PKT, for example, is the largest subsidiary of the Indonesian fertilizer group. The performance of the last few years is relatively good. They have the largest integrated fertilizer manufacturing facility in Indonesia and even in ASEAN. They also started to focus on the production of NPK fertilizer for commercial and export purposes. They are also in the process of expanding the construction of a new fertilizer factory in Papua.
From a business point of view, PKT will be released by Holding in the PSO assignment, so they can focus on commercial aspects. So the prospect of an IPO from PKT must be quite good
PGE is a big player in geothermal and has now been consolidated under the Pertamina power & renewable energy sub-holding. With this geothermal holding plan, PGE’s strength will be even greater. It is hoped that the level of efficiency and productivity will also increase.
PGE will have good prospects due to the increasing need for green energy. Indeed, PGE needs a large CapEx investment to increase its capacity. But in the future PGE will become one of the main choices for green energy. Moreover, in the future, the government is also planning the establishment of a geothermal holding company which involves several operators in the same field , including PGE.
While PalmCo is a sub-holding of PTPN which focuses on business development in palm oil. Palm oil in the future is a commodity that is still in demand by the world for example, the current problem is the issue of unconducive palm oil regulations related to export ban sales. But the regulations have been corrected and in the future palm oil can rebound again as the prima donna.
