Indonesia's Pertamina Geothermal tightens price in IPO worth up to $611 mln
[1/3] A view of state-owned oil giant Pertamina's refinery unit IV in Cilacap, Central Java, Indonesia January 13, 2016. REUTERS/Darren Whiteside/File Photo
SYDNEY/SINGAPORE, Feb 3 (Reuters) - (This Feb. 3 story has been refiled to correct the spelling of brokerage in paragraph 7)
Indonesia's Pertamina Geothermal Energy, a unit of state energy company Pertamina (PERTM.UL), has narrowed the price range for its initial public offering, according to a term sheet seen by Reuters on Friday.
The top end of the range of between 875 rupiah and 880 rupiah a piece values the IPO at up to 9.11 trillion rupiah ($611 million), the largest in Indonesia in almost a year after the $1.1 billion listing of tech firm GoTo (GOTO.JK) in April.
The range is tighter than the 820 rupiah to 945 rupiah range set out in a prospectus on Wednesday.
The IPO comes as Pertamina aims to double its geothermal capacity by 2027-2028, which may cost an estimated $4 billion. Indonesia, Southeast Asia's largest economy, is keen to tap into its geothermal resources to cut energy imports and reduce carbon emissions.
Pertamina Geothermal is selling 10.35 billion shares, or 25% of the enlarged share capital. Most of the IPO proceeds will be invested into expanding capacity of its working geothermal areas, its prospectus said.
Books will be closed on Feb. 10. The public offering is scheduled for Feb. 20–22 and the shares will debut on the Jakarta stock exchange on Feb. 24.
Credit Suisse is the sole global coordinator, according to the term sheet. It is also an underwriter, along with CLSA Sekuritas Indonesia and Mandiri Sekuritas.
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