08-07-2022 | By : Arkora Hydro
JAKARTA, investor.id - PT Arkora Hydro Tbk (ARKO) held an initial listing on the Indonesia Stock Exchange (IDX) on Friday (8/7/2022).
In the initial trading on the secondary market, Arkora Hydro shares opened at Rp 300 or the same as the initial public offering (IPO) price. Within 15 minutes of trading, Arkora shares had touched the highest level of Rp 338 and the lowest level of Rp 286.
In a corporate action in the form of an initial public offering (IPO), ARKO managed to reap fresh funds from the capital market as much as Rp 182.67 billion through the issuance of 608,895,000 new shares.
Investors are very enthusiastic about ARKO shares. This can be seen from the high interest during the supply period, so that it was oversubscribed 10.89 times.
The high enthusiasm of investors has prompted ARKO to issue additional 28,995,000 shares from portfolios. So that the issued shares became 608,895,000 shares, from the original plan of 579,900,000 shares.
ARKO's President Director, Aldo Artoko said the company has set the IPO price at Rp 300 per share from the initial range of Rp 286 per share to Rp 310 per share. The number of shares offered by the company represents 20.79% of ARKO's issued and paid-up capital after the IPO shares.
"We will use the proceeds from this IPO for two purposes. First, 63% for additional investment in subsidiaries which will be maximized for the development of new and renewable energy (EBT) projects in the future, namely 54% in PT Arkora Hydro Sulawesi (AHS), 29% in PT Arkora Energi Baru, and 17 percent in PT Arkora Energi Baru. % at PT Arkora Tenaga Matahari," said Aldo, Friday (8/7/2022).
Then, the remaining 37% will be used to pay off short-term obligations. Meanwhile, the funds obtained from excess orders for centralized allotment will be used by the company for working capital, including plans for developing a hydroelectric power plant, such as the cost of surveys for finding new potential locations, feasibility studies, electricity studies, and other studies. others related to the development of hydroelectric power projects.
Aldo believes that the EBT business has enormous potential in Indonesia, even in mature technologies such as hydro, solar and wind. The presence of hydro is already competitive compared to coal-fired power plants. The utilization of NRE potential is still far below 10%.
Aldo said, with experience in the NRE field, ARKO plans to look for acquisition opportunities.
"We are also actively looking for hydro projects with large potentials above 25 MW," he said.
ARKO has completed the construction of the Cikopo-2 mini hydro project with a total cost of US$ 1.65 million/MW. "Cikopo-2 is a 7.4 MW power plant owned and operated by ARKO," said Aldo.
Not only that, ARKO is also working on the Tomasa project. The Tomasa project will cost an investment of US$ 1.75 million/MW. The investment cost is below the industry average of US$ 2.2 - 2.5 million/MW. The Tomasa project is a power plant with a capacity of 10 (2x5) MW.
“This project belongs to ARKO through its subsidiary, PT Akora South Sulawesi. The Tomasa project entered the commercial operations date (COD) stage in March 2020," he said.
Meanwhile the Yaentu project in Poso (Central Sulawesi) is under construction. The Yaentu project with a capacity of 10 (2x5) MW was developed by PT Arkora Hydro Sulawesi, an indirect subsidiary of ARKO.
“This project is in progress. Until March 2022, the project construction process has reached 50%. This project is targeted to enter the COD stage in the first quarter of 2023. ARKO is also preparing for the construction phase of the Kukusan-2 Project in Lampung, Sumatra with a capacity of 5.4 MW. This hydropower project is targeted to operate in the fourth quarter of 2024. ARKO continues to be committed to increasing the renewable energy mix through the construction of hydroelectric power plants in participating in developing Indonesia, "he explained.
Editor : Theresa Sandra Desfika (email@example.com)
Source: Investor Daily