Cikarang Listrindo raises $275m, becoming Indonesia’s largest IPO in 2016

Photo by Cikarang Listrindo

Indonesian power company PT Cikarang Listrindo Tbk set the initial public offering (IPO) at Rp1,500 per share after marketing its 2.5 billion shares – raising Rp3.75 trillion ($275.74 million), said sources close to the deal.

Previously the company had offered the shares with a price range of Rp1,430 – Rp1,970 each.

The final price of the shares equals 7.3 times EV/EBITDA (enterprises value divided by earnings before interest, tax, depreciation and amortization) for the financial year or price to earning at 12 times of 2017 earnings.

Also Read: Power firm Cikarang Listrindo eyes $360 listing, could be Indonesia’s largest IPO this year

Cikarang Listrindo’s IPO has been oversubscribed predominantly by the foreign investors including the anchor investor Matthews International Capital Management, which has come in for $50 million worth of shares.

Citigroup, Deutsche Bank, UBS and PT Indopremier Securities acted as joint book-runners for the IPO.

The international roadshow was launched in Hong Kong and wrapped up by May 26. Indonesian retail investors will have a chance to place orders between June 7-8, a week before the stock goes live on the Indonesian Stock Exchange (IDX) on June 15.

After the listing, stake of Cikarang’s existing shareholders will be diluted. PT Udinda Wahanatama‘s share will be reduced from 39.92 per cent to 36.38 per cent, while PT Pentakencana Pakarperdana and Brasali Group each will hold a reduced stake  of 27.04 per cent instead of the 31.81 per cent

The shareholders plan to then divest another 15 per cent of stakes in Cikarang through a private placement. Udinda will end up with 25.46 per cent, while Brasali and Pentakencana will each hold 22.27 per cent.

The West-Java based firm is planning to use the IPO proceeds to expand its generation capacity and other general corporate purposes. Last year, Cikarang Listrindo and US’s General Electric inked a $600-million deal for power plant developments.

In order to cope with increasing electricity demand, Cikarang is building a new 280 megawatt coal-fired power plant that is expected to complete by the end of this year. Completion of the new plant will boost the company’s total installed capacity by 32 per cent to 1,145 megawatts.

Also Read: IPO route turns hot as nine Indonesian firms line up to list on IDX in Q2

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.