JAKARTA (TheInsiderStories)—Three state-owned enterprises (SOE) subsidiaries namely PT Wijaya Karya Realty (Wika Realty), PT Bank BRI Syariah and PT Asuransi Tugu Pratama Indonesia eyes US$450.127 million from initial public offering (IPO) in the second quarter of 2018.
The subsidiary of PT Bank Rakyat Indonesia (BBRI) plans to list it shares on Indonesia Stock Exchange (IDX) on May 9, 2018. The company eyes Rp1.70 trillion ($121.6 million) from the IPO.
BRI Syariah officially received an effective statement from the Financial Services Authority (FSA) for IPO on April 30, 2018. The islamic bank will use most of the funds from IPO to increase the loan distribution and to build the branches across the country.
BRI Syariah has appointed joint lead underwriters for the IPO namely Bahana Sekuritas, CLSA Sekuritas, Danareksa Sekuritas, and IndoPremier Sekuritas. Together with underwriters, BRI Syariah set the price of its initial public offering of Rp510 per share.
Wika Realty, a subsidiary of state-owned construction company PT Wijaya Karya Tbk (IDX: WIKA), seeks to raise upt to $229.63 million from an IPO scheduled in May.
President Director of Wika Realty Agung Salladin said the company will release 12.51 billion shares, equivalent to 25 per cent of its total paid-up capital and has set its IPO price at Rp195 to Rp255.
The firm plans to use the IPO proceeds to help fund capital expenditures on the existing projects and for the land acquisition. The company is working on 22 new projects and plan to work on seven more projects worth as much as Rp700 billion this year.
The process currently at the book building stages. The company expects to secure an effective statement from the FSA by May 9, 2018, before listing its shares at the IDX on May 17, 2018.
ASURANSI TUGU PRATAMA
Meanwhile, Indonesian general insurer Tugu Pratama, which is majority-controlled by state-owned energy company PT Pertamina, will offer 282.35 million new shares to the public through an initial public offering on the IDX. It is equivalent to 15 per cent of the company’s total equity.
The offering price is around Rp 3,850 to Rp 5,000 a share. The company eyes around Rp1.4 trillion from this IPO. The insurer plans to use 75 percent of the IPO proceeds to strengthen its capital base, including for strengthening its operations, while the remainder will be injected into its reinsurer subsidiary PT Tugu Reasuransi Indonesia.
Bahana Sekuritas Analyst Muhammad Wafi priced the three companies are taking a momentum to IPO this year as the next year will be the more high risk because of the presidential election and 171 local elections.