PHE Gets Ready for a Giant IPO Next Year

The State-Owned Enterprises (BUMN) Ministry expects PT Pertamina Hulu Energi (PHE) to hold an initial public offering (IPO) in 2023. SOEs first deputy minister Pahala N. Mansury revealed that the valuation of Pertamina's upstream sub-holding company has already reached US$100 billion. "Currently, PHE has chosen an advisor. Both legal and finance divisions have completed financial reports as of June for the auditing and certified the reserves, which are an important part of the upstream oil and gas IPO," Pahala elaborated in a working meeting with the House of Representatives' (DPR) Commission VI, overseeing SOEs and industry, on Wednesday.

PHE has also reported the IPO plan to offer a maximum of 15 percent of its shares to the Financial Services Authority (OJK). "PHE will start conducting a market sounding and trying to understand how much demand can be satisfied in the public offering. We hope that PHE will be able to offer 10-15 percent of its shares in the capital market," Pahala said. However, PHE has not yet set a target for the funds they will raise through the IPO. "We still need further studies," PHE president director Wiko Migantoro said.