Company Valuation for Initial Public Offering of PT Petronesia Benimel

Abstract

In the Long-Term Plan of PT Petronesia Benimel, the set sales growth per year from 2021 to 2025 is 30% per year. This is very possible to be realized, because in the next five years the company is still working on the Trans Sumatra Toll Road infrastructure project which is an assignment from the government to PT Hutama Karya (Persero), working on oil and gas projects, entering the mining business, and other infrastructure projects. To carry out these projects requires additional investment for working capital and capex spending. The company has determined that the source of funding for this will be obtained through an IPO. In order for the purpose of the IPO to get new funding can be carried out properly, then the value of the company at the time of the IPO must be worth offering. To find out this, the study conducted a valuation to provide an idea of the intrinsic value of the company that will be offered at the time of the IPO. Valuation is done by discounted valuation method for 2021 to 2030. The growth rate used is from 2021 to 2025 at 30% per year and since 2026 using declining growth with a decrease of 5% per year and will be stable at the level of 5%. The discount rate used is 16.42%. The calculation results obtained the intrinsic value of the company Rp 1,091,909,679,734. The company's equity book value amounted to Rp 537,376,950,787. The conclusion of this study is that the intrinsic value of the company is 2.03 times the book value of equity so that feasible to conduct IPO.