Renewable-based energy company PT Hero Global Investment Tbk (IDX: HGII) officially listed its shares on the Indonesia Stock Exchange (IDX) on Thursday (January 9), following a recent initial public offering (IPO) that raised Rp 260 billion in proceeds.
HGII President Director Robin Sunyoto explained that the IPO funds would be used for expanding renewable energy plants. HGII targets managing renewable energy plants with a total capacity of 100 MW by 2031.
“The Rp 260 billion raised from HGII’s IPO will be used for the development of a 25-megawatt hydroelectric power plant (PLTA) and a 10-megawatt mini-hydro power plant (PLTM), both located in North Sumatra,” said Robin during the company's share listing ceremony at the IDX in Jakarta on Thursday (January 9, 2025).
He explained that the 25 MW hydroelectric plant is expected to begin construction in 2025, while the 10 MW mini-hydro plant is projected to start construction in 2026. Both hydro plants are targeted to begin commercial operations by 2028.
In total, HGII plans to develop hydroelectric plants with a total capacity of 58 MW, along with other renewable energy projects, including biomass (8 MW), biogas (6 MW), and solar (10 MW) plants over the next six years. The goal is to strengthen the company’s position in the clean energy sector in Indonesia.
Read also : Shikoku Electric to acquire 25% stake in HGII
During the IPO, HGII sold 1.3 billion shares, or 20% of its total paid-up capital after the offering, at a price of Rp 200 per share. The lead underwriters for HGII's IPO were PT OCBC Sekuritas Indonesia and PT UOB Kay Hian Sekuritas.
Founded in 2010, HGII is a rapidly growing national private company in the renewable energy sector in Indonesia. It currently owns and operates the 9 MW Parmonangan-1 mini-hydro plant and the 10 MW Parmonangan-2 mini-hydro plant, both located in Desa Manalu Dolok, Kecamatan Parmonangan, Kabupaten Tapanuli Utara, North Sumatra Province. HGII also holds a minority stake in the Ujung Batu 3 MW biogas power plant in Riau Province.
In November of the previous year, Japan’s Shikoku Electric Power Co. Inc. (Yonden) entered into an agreement to acquire a 25 percent stake in HGII. The transaction, carried out through Yonden’s subsidiary SEP International Netherlands BV (SEPI), will be completed following HGII’s IPO on the IDX.
“This partnership with Yonden provides a significant opportunity for HGII to accelerate renewable energy growth in Indonesia,” said Robin last year.
Yonden, which manages over 1,000 megawatts of renewable energy capacity globally, is expected to contribute its technical expertise to support HGII’s projects.
“With Yonden’s technical support and expertise in project development, operation, and maintenance, Hero is confident that it will make significant contributions to Indonesia’s renewable energy industry,” Robin added.
According to a public filing, SEPI will acquire 1.6 billion shares, representing 25 percent of Hero’s total shares, at the IPO price. The shares will be purchased from Hero’s three major shareholders: Rudy Chandra, Robert Njo, and Hendrianto Thamrin.
Editing by Reiner Simanjuntak
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