Updated: Oct 25
Indonesia Stock Exchange (IDX) has recently added PT Barito Renewables Energy Tbk. (BREN) to its watchlist, a response to an astonishing 447% surge in the company's stock price since its recent initial public offering (IPO). BREN's shares soared to a record high of Rp4,270 per share one Wednesday (10/18), significantly exceeding their IPO price of Rp780 per share. BEI's decision to monitor BREN is in response to "Unusual Market Activity" (UMA) and aims to protect investor interests while maintaining market integrity. BREN, a subsidiary of the well-known conglomerate Prajogo Pangestu, has rapidly become the focal point of the capital market due to its unprecedented stock performance. During the initial trading session on the same day, BREN secured the top spot as the most actively traded stock, with a transaction value of Rp943.5 billion. Furthermore, BREN's stock price increased by a notable 2.62% to reach Rp3,520. Remarkably, it maintained its leading position until the market closed, accumulating a transaction value of over Rp1 trillion and experiencing a substantial 10.20% price increase to Rp3,780. Arjun Ajwani, a Research Analyst at Infovesta Kapital Advisori, attributed BREN's remarkable performance to the positive sentiment surrounding renewable energy companies, specifically those classified under "Energi Baru Terbarukan" (EBT), or Renewable New Energy. This optimism is rooted in the favorable long-term outlook for the renewable energy sector, underscoring its increasing importance.
Heading towards a sustainable future, PT Barito Renewables Energy Tbk paved its way through IDX floors on Monday (10/9). With this, BREN denotes itself as the 69th company to be enlisted this year. Furthermore, the CEO of Barito Renewables, Hendra Soetjipto Tan, assured that the firm would not limit itself to geothermal industries but attain sustainable technology. In order to achieve these endeavors, Hendra also aims to synergize with investors and other collaborative partners. A few of their long-lasting partnerships are with PT Pertamina Geothermal Energy Tbk (PGEO) and PT Perusahaan Listrik Negara (PLN). Moreover, enhancing human capital to favor the development of a green economy further is needed. As one of the pioneers of renewables in the country, BREN's IPO is to set the valuation for the industry and is willing to encourage the listing of fellow renewable energy firms. This vision goes hand-in-hand with their ultimate goal: to assist the government in accomplishing the transition to a sustainable future. For information, Barito Renewables offered 4.105 billion shares for Rp780 per share, successfully raising a total of Rp 3.13 trillion with an oversubscription of 135.2 times. With this price from this Initial Public Offering (IPO), BREN pocketed funds worth IDR 3.13 trillion. After deducting emission costs, all proceeds from the IPO will be used by BREN to deposit capital to Star Energy Group Holding.
In a notable turn of events, the stock of PT Barito Renewables Energy Tbk (BREN) has once again reached its Auto Reject Above (ARA) threshold during Tuesday's trading session (10/17). Closing at a remarkable Rp3.430 per share, BREN witnessed a staggering 24.73% surge within a day, accumulating a phenomenal 340% increase in just a week since its initial public offering (IPO). With a current market capitalization of Rp 458.89 trillion, BREN now surpasses the market capitalization of prominent companies like PT Telkom Indonesia Tbk (TLKM) and PT Amman Mineral Internasional Tbk (AMMN) while remaining below PT Bank Mandiri Tbk (BMRI). Despite repeatedly submitting the Annual Report (ARA) in a well-bound format for seven consecutive days, the Indonesia Stock Exchange has yet to issue any warnings regarding the significant increase in BREN stock. This price surge has raised questions about whether the stock remains a viable investment option. The total number of bid orders for BREN reached 1.1 million lots, equivalent to approximately Rp110 million. Roger MM, the Head of Investment Information at Mirae Asset Sekuritas, pointed out that the current valuation of BREN shares is considered premium compared to other geothermal developers who have recently conducted their initial public offering (IPO), such as PT Pertamina Geothermal Energy Tbk (PGEO). The remarkable ascent of BREN's stock has prompted investors to ponder its sustainability and whether it still presents an attractive opportunity in the face of its elevated valuation.
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