Indonesia Energy Targets To Raise $15m In NYSE Listing This Week

Jakarta-based onshore oil and gas company Indonesia Energy Corporation is looking to raise $15 million in an initial public offering (IPO) on the New York Stock Exchange this week.

According to the investment advisory firm Renaissance Capital IPO, the company is offering 1.5 million shares at a price range between $9 to $11 apiece. With the proposed shares price, this will bring the company’s total valuation to $75 million.

The company has appointed New York-based Aegis Capital as the lead underwriter for the IPO.

Indonesia Energy, which was founded in 2014, operates eight wells in the archipelago and manages the Kruh oil block in South Sumatera and Citarum block in West Java.

Previously, the company said in a filing to the US Securities and Exchange Commission on July 30 that it expects to raise $23 million, with Maxim Group as the sole bookrunner for the IPO.

“We will allocate the majority of our IPO proceeds to finance the exploration of the Citarum block as part of the company’s strategy to add and develop new reserves. The remaining proceeds will go towards in funding the working capital and other corporate purposes,” the company said, in the filing.

Indonesia Energy, which will trade under the ticker name INDO at NYSE, booked $6 million in revenue over the last 12 months.

The company’s business is focused to manage and operate the medium-sized blocks, which are relatively overlooked by major exploration companies who compete with larger oil assets.

It acquired the rights to operate Kruh Block in 2014 through its subsidiary Green World Nusantara. Kruh Block, which covers 258 sq km, is located around 25 km northwest from Pendopo, South Sumatera region. The block produces an average of 9,000 barrels of oil per month, up 25 per cent from 2015.

Meanwhile, the Citarum block is located in an area of ​​3,924.67 sq km in West Java. The area has tremendous gas potential, with more than 150 oil and gas fields, operated by state-owned energy firm Pertamina.

Hong Kong-established WJ Energy Group is the holding company of Indonesia Energy.

Through the NYSE listing, Indonesia Energy will join state-controlled telecom company Telkom Indonesia that has been trading its shares on NYSE since 1995. Telecom operator Indosat had its market outing in New York before it got delisted in 2013.