Indonesian solar panel producer Sky Energy taps IPO route to raise $6.8m

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Indonesia’s solar panel producer Sky Energy will be looking to raise up to Rp 91.5 billion ($6.8 million) through an initial public offering on the Indonesian Stock Exchange (IDX), after the company disclosed that it will offer 203,256 or equivalent to around 20 per cent of its deposited capital.

The company confirmed to DEALSTREETASIA that its shares will be priced at a range of Rp 375-Rp 450 apiece. Based on the estimated price, the company will be expecting to raise between Rp 76.2 billion-Rp 91.5 billion from the public offering.

The offering is scheduled to be held from March 15 to March 21, 2018, and the company says it’s shares will be listed on the IDX by March 28.

In its preliminary prospectus, Sky Energy revealed that the proceeds from the IPO will be used as capital expenditure to increase the company’s production capacity amid increasing demand for the company’s product.

The proceeds “will be used by the company for capital expenditure including for the purchase of machines and equipment amid growth of business activity, and the purchase of land as well as the addition of production area,” the prospectus states.

According to the company, Indonesia’s strategic location makes it a prospective market for solar power generator development, with both the west and east parts of Indonesia showing significant solar radiation potential.

The solar energy sector has received a big boost from the Indonesian government. In 2015, President Joko Widodo vowed in front of world leaders to reach a target of 23% renewable energy by 2025. The target is manifested in the form of a government regulation and a programme of building solar generators to produce 5,000 MW by 2019.

Established in 2008, initially as a solar panel distributor, Sky Energy  teamed up with Hitachi High-Technologies Indonesia in 2009 to build manufacturing facilities and started producing solar panels in 2012. In 2016, it claimed to be the biggest solar panel producer in the country with a production capacity of 100 MW, as well as having 50 MW production capacity for solar cells.

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