PGEO rules out buyback as it targets 12.5% free float by March 2027
The Indonesian geothermal company has reviewed options including shareholder divestments and a rights issue, but is awaiting internal approvals.
PT Pertamina Geothermal Energy Tbk. (PGEO) will not repurchase its shares as it works towards meeting Indonesia Stock Exchange free-float requirements, finance director Fransetya Hasudungan Hutabarat said. The company aims to bring its publicly held share proportion to 12.5% in March 2027 and 15% in 2028.
Speaking at a media briefing in Menteng, Central Jakarta, on 4 November 2026, Fransetya said PGEO's current free float was around 11.2%. He said a buyback would reduce that proportion, contrary to the company's priority of meeting the requirements.
PGEO has completed its assessment of possible measures, including sales by existing shareholders and the issuance of new shares through a rights issue. No mechanism has been chosen, and the options are awaiting internal approval.
The approval process also involves Pertamina's subholding and holding-company levels, Fransetya said. PGEO will select an option once those approvals are complete, before proceeding with implementation in the market.
Fransetya said the company expected a larger free float to improve trading liquidity. He also pointed to growing foreign institutional interest in PGEO shares and said any transaction would need to take account of the company's financial position and fundamentals.
