Indonesia’s PELNI Hospital Eyes US$71M from IPO

Nurse Station - Photo by Pelni Hospital

JAKARTA (TheInsiderStories) – PT PELNI Hospital, a subsidiary stated-owned cruise operator of PT Pelayaran Nasional Indonesia (PELNI), plans to raise fresh funds Rp1 trillion (US$70.92 million) through the initial public offering on the Indonesia Stock Exchange (IDX), Bisnis reported on Tuesday (22/05).

President Director of Pelni Insan Purwarisya Tobing is expected to be executed the plan in the third quarter of 2018. The IPO’s plan, she said has pocketed permission from the Ministry of State Owned Enterprises (SOEs) and underway to pick the underwriter.

She exposed the funds obtained will be used to build a new PELNI Hospital to capture the increasing number of patients of Health & Social Security Agency served more than 2,000 patients per day.

In addition, she added, the subsidiary will open new hospitals in Maluku and Sulawesi. The facility is estimated to have a capacity of 200 beds.

Beginning with the construction of 1918 by the Dutch-born architect Tulungagung, Frans Johan Louwrens Ghijsels, PELNI Hospital at which time it was named: KPM Ziekenhuis which specially operated to serve crew and family of a Dutch shipping company.

After Indonesia’s independence, KPM Ziekenhuis made changes along with nationalization of KPM assets into the Indonesian National Shipping, both in terms of name to PELNI Hospital, the addition of facilities, human resources and segments of patients served.

So far 16 companies has listed its shares on IDX. Today, two new issuers listed namely PT Sarimelati Kencana Tbk (IDX: PZZA) and PT Guna Timur Raya Tbk (IDX: TRUK)

PZZA released 604.37 million shares with an exercise price of Rp1,100 per share, PZZA pocketed fresh funds amounting to Rp664.81 billion from the IPO. Meanwhile, TRUK released 150 million shares through an initial public offering at an exercise price of Rp230 per share and raised Rp34.5 billion.

Last week, three companies have listed their shares namely PT Surya Pertiwi Tbk (IDX: SPTO), PT Royal Prima Tbk (IDX: PRIM) and PT Medikaloka Hermina Tbk (IDX: HEAL).

With the initial listing of the five listed companies, currently there are 581 companies listed on the IDX.

At the same time amid the sluggish market, five companies delayed their IPO’s plan including PT Wika Realty, the subdiary of state-owned construction firm PT Wijaya Karya Tbk (IDX: WIKA), PT Wahana Vinnyl Nusantara, PT Artajasa Pembayaran Elektronis and PT Harvest Time.

Indonesia Stock Exchange Director Samsul Hidayat said the five companies postponed their IPO planning because they are looking for the right momentum amid the fluctuation in the capital market. Still, there are still 24 companies waiting for the Financial Service Authority approval to conduct IPO, he added.

The decision to delay IPO plans this year may extend to 2019, a year that will be filled with the general and presidential election, adding more risks to the capital market.

The Jakarta Composite Index (JCI) had been in decline since last week. Yesterday, JCI closed at 5,733.85, down by 49.46 per cent or 0.86 per cent extending last week drop of 0.56 per cent of 32,61 points at level 5,783.31. JCI finally closed up by 0.59 per cent or 33.77 points at 5,751.12 level on May 22, 2018.

The weakened due to the negative perception of Indonesia’s economic condition and national security concern. In the economic condition, rupiah continues to weaken against U.S Dollar.

The Rupiah is the second worst performing currency in Asia in the last three months and broke through Rp14,200 per U.S dollar, a level not seen since December 2015.

The economy also suffered from a series of terrorist attacks that raise doubts on Indonesia’s national security. In the days leading up to Ramadan 2018, Indonesia suffered a spate of terrorist attacks that left 48 people dead, including members of two families who carried out suicide bombings in Surabaya.