JAKARTA (TheInsiderStories) - Four State Owned Enterprises (SOEs) ready to conduct a limited public offering (rights issue) with total amount Rp14.3 trillion (US$1.09 billion) in fourth quarter of 2016 (Q4) to strengthen its capital, one official said.
The fourth state-owned companies are PT Wijaya Karya Tbk (IDX: WIKA), PT PP Tbk (IDX: PTPP), PT Krakatau Steel Tbk (IDX: KRAS) and PT Jasa Marga Tbk (IDX: JSMR). Deputy for Restructuring and Business Development for SOE Ministry Aloysius Kiik Ro said, the government would take a part of Rp 9 trillion through the capital injection.
“The companies will start to offers the rights issue on third week of October to mid December. The public portion around Rp 5.3 trillion,” said Aloysius after a meeting at the Coordinating Ministry for Economic Affairs office.
The government has allocated capital injection in the Revised State Budget for 2016 Rp 4 trillion for Wijaya Karya, Rp 2.25 trillion for PP, Rp 1.5 trillion to Krakatau Steel, as well as Rp1.25 trillion for Jasa Marga.
CEO of Jasa Marga Adityawarman explained the company would conduct a rights issue to finance a number of highway projects across the country. The company plans to raises around Rp1.8 trillion or equal to 5 percent of total enlarged capital in November.
Meanwhile, Bintang Perbowo, the CEO of Wijaya Karya, adding the state-owned contractor has plans to carry out a rights issue with worth Rp 6.1 trillion. The public portion Rp2.1 trillion and government Rp 4 trillion.
On other hand, the CEO of PP Tumiyana mentioned, the target of a rights issue worth Rp 4.4 trillion, which will be taken by the government through the capital injection of Rp2.25 trillion and Rp 2.15 trillion from public.
Alloysius adding, Krakatau Steel plans to conduct rights issue Rp1.8 trillion and will use the fund for business expansion. Currently, public own 30 percent shares of Jasa Marga, KRAS 20 percent, PP 49 percent and Wijaya Karya 34.95 percent.
Indonesia government plans to produce more instrument into the financial market to absorb the repatriate funds will enter the country. For that, several SOEs have plans to issue bonds in the second half of this year.
According to Tumiyana, PP plans to issue Rupiah bond Rp2 trillion while Jasa Marga also considers to launchs sthe bond in this year.