JAKARTA: Indonesia’s Pertamina Geothermal Energy, a unit of state energy company Pertamina, plans to offer as much as 25% of its stake in an initial public offering this month.

The exercise will raise a maximum of 9.78 trillion rupiah (US$652mil or RM2.8bil) in proceeds.

A book-building exercise has been launched following the release of its prospectus yesterday.

The public offering is scheduled for Feb 20-22.

CSLA Sekuritas Indonesia, Credit Suisse Sekuritas Indonesia and Mandiri Sekuritas have been hired as underwriters.

Most of the proceeds from the share sale is expected to be invested into capacity expansions of its working geothermal areas, the prospectus said.

Pertamina’s chief executive last year said the company aimed to double its geothermal capacity by around 2027-2028 which may cost an estimated US$4bil

Indonesia is keen to tap into its geothermal resources amid efforts to cut energy imports and reduce carbon emissions.

 - Reuters