Indonesian Billionaire Prajogo Pangestu's Chandra Daya IPO Values Company At $1.4 Billion

A chemicals and gas storage facility and jetty run by Chandra Daya Investasi.
Chandra Daya Investasi—an infrastructure company backed by Indonesian billionaire Prajogo Pangestu's petrochemical company Chandra Asri Pacific—is gearing up for an IPO that will value the company at 23.7 trillion rupiah ($1.4 billion).
The company—which operates a 120-megawatt power plant outside Jakarta and supplies electricity to more than 200 companies and 1,600 homes—is selling up to 12.4 million new shares, equivalent to a 10% stake, at between 170 rupiah and 190 rupiah each in the maiden share sale. It aims to raise up to 2.4 trillion rupiah ($144 million), according to its IPO prospectus released on Thursday.
'Through this initial public offering, we aim to strengthen our position as a growth partner for the industry and create opportunities for collaboration that fosters long-term, value-added development for all stakeholders,' Fransiskus Ruly Aryawan, president director of Chandra Daya Investasi said in a statement.
The book building process started today and will be completed on June 24, with the company slated to be listed on the Indonesia Stock Exchange on July 8. After the IPO, Chandra Asri Pacific's stake in the company will be reduced to 60%, while Phoenix BV, a unit of Thailand's Electricity Generating Public Company, will own 30%.
Chandra Daya will use the funds raised from the IPO to expand the company's logistics and port operations. It currently runs seven ships that carry chemicals and gas, and it owns two docks for handling large vessels.
Its parent, Chandra Asri, has been expanding in Indonesia and Southeast Asia. It's building an $800 million chemical plant near its existing facility in Cilegon, about 100 kilometers west of Jakarta. In Singapore, the company and its partner Glencore bought Shell's refinery and Chevron Phillips' polyethylene plant.
Jakarta-listed Chandra Asri is part of Barito Pacific, a company originally focused on timber that Pangestu transformed into a major player in energy and petrochemicals. With a real-time net worth of $25.1 billion, Pangestu ranks among Indonesia's wealthiest individuals. He also holds stakes in publicly traded coal miner Petrindo Jaya Kreasi and Barito Renewables.

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