COMPARING COMPANY VALUATION BEFORE AND AFTER IPO STUDY CASE PT PERTAMINA GEOTHERMAL ENERGY TBK

• Main Author: Nur Afidah, Anita
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85909
• Institution: Institut Teknologi Bandung

PT Pertamina Geothermal Energy Tbk (PGEO) is leveraging Indonesia's renewable energy potential, particularly geothermal energy, as the country transitions to cleaner energy sources. With global momentum towards sustainable energy, PGEO is well-positioned to play a key role in meeting the country’s rising energy demands while also contributing to carbon reduction. As a state-owned enterprise (SOE), PGEO established to provide competitive goods and services while enhancing corporate value, strategic decisions like an IPO must demonstrate measurable value increases. The potential of the renewable energy business sounds promising, but the true value can be determined better by calculating the company's valuation. However, investors face challenges in assessing its true value of company to build confidence in a relatively new sector within the public market, compared to the traditional energy companies with longer track records. This research aims to analyze the differences in the company's valuation before and after the IPO, assess financial performance, and provide insights that can assist investors in formulating action plans based on these analyses. With this data, investors will be better equipped to make informed decisions about investing in renewable energy companies like PGEO. The calculation of the company's intrinsic value is conducted using the Discounted Cash Flow Valuation method for the pre-IPO and post-IPO period. In resulting the intrinsic value pre-IPO is IDR 989,05 and the intrinsic value post-IPO is IDR 1.242,53. PGEO's financial performance is strong and liquid, demonstrating steady annual growth with promising future prospects. The company's value has also increased after IPO. However, investors should remain cautious and be prepared for a long-term commitment, as the geothermal energy sector typically requires a longer timeframe to generate substantial returns from its core business.