The company has received Rp 81.3 billion (US$5.93 million) in fresh funds after releasing 20 percent of its shares to the public under the code “JSKY” on Wednesday. It plans to use all of the IPO proceeds for its capital expenditure (capex).

Sky Energy president director Jackson Tandiono said the company had earmarked Rp 200 billion for its capex this year.

“We have obtained around Rp 80 billion from the IPO and we will use it to invest in machinery,” he said at the Indonesia Stock Exchange (IDX) on Wednesday.

The company will seek additional funds to meet the rest of its capex allocation from bank loans and use it to purchase land and expand its production areas.

Located in Gunung Putri, Bogor, West Java, Sky Energy’s production facility has a production capacity of 100 megawatts (MW) for solar modules and another 50 MW for solar cells as of last year.

“We will add the production capacity of solar modules by 100 MW and solar cells by 50 MW this year,” Jackson told reporters.

So far, the company holds the largest production capacity, beating seven other solar panel producers operating in Indonesia.

The company has exported its solar panels to the United States, Japan, Canada, Finland and Turkey, among others.

As of last year, overseas sales made up 36 percent of Sky Energy’s revenue. As it seeks to enlarge the contribution of exports to its revenue, the company expects to widen its presence in more European countries this year.

It expects exports to provide it with a natural hedge because currently, although the majority of its costs of goods sold are incurred in rupiah, some are still incurred in US dollars.

Besides expanding its overseas markets, it also continues to broaden its coverage in the domestic market, mostly through partnerships with both the government and private institutions.

Sky Energy is confident that the energy needs in Indonesia will continue to rise given the low electrification ratio, represented by the percentage of households connected to the nation’s electricity grid. There is also a wide gap between the ratio in western and eastern Indonesia because of the availability of electricity
infrastructure.

In addition to increasing the ratio and filling this gap, the Indonesian government is also pushing for the development of clean energy and aims to construct solar power plants with a total capacity of 6,500 MW by 2020.

Sky Energy’s revenue in the first nine months of last year surged significantly by 82 percent year-on-year (yoy) to Rp 314.92 billion.

Its net profit also increased by 137.23 percent yoy to Rp 19.13 billion in the same period.

The company was targeting to book about Rp 500 billion in revenue and approximately Rp 30 billion in net profit, Jackson said.

Mirae Asset Sekuritas associate director and head of investment banking Mukti Wibowo said Sky Energy’s shares were in high demand from institutional investors.

During the opening session on Wednesday, they surged by 50 percent to Rp 600 apiece from an initial offering of Rp 400.

“The investors were mostly local institutions. Foreign investors were about 30 percent,” Mukti said, adding that the total number of investors reached 1,660, indicating a huge interest from the market.

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