Ten Subsidiaries of SOEs Ready Go IPO, GMF Seeks US$300 Million

Photo by Cabinet Secretary
JAKARTA (TheInsiderStories) – Nine subsidiaries of state-owned enterprises (SOEs) ready to go IPO (initial public offering) followed President Joko Widodo instruction to utilize capital market to get fresh funds.

Minister of State-Owned Enterprises Rini Soemarno confirmed her ministry preparing several SOE’s unit to list their shares at Indonesia Stock Exchange (IDX) in this year.

“This year we hope GMF (PT Garuda Maintenance Facilities) go IPO. We hope in September or October,” She said.  

After meeting with the capital market players at IDX on July 4, President Widodo expect the capital inflow to Indonesian capital market could grow double this year compared to last year worth of Rp126 trillion (US$9.47 billion) followed the positive momentum after Fitch Ratings, Moody’s, then Standard & Poors put Indonesia on the investment grade.

He noted, during January until May the capital inflows coming into Indonesia almost equal to last year’s figure worth of Rp124 trillion. To improve the market capitalization of IDX, President urged SOEs and foreign firms with their operations in Indonesia also list their shares and other instrument on IDX to finance their business.

Meanwhile, IDX Director Samsul Hidayat said the subsidiaries of SOEs who plans IPO in 2017 namely PT Jasa Armada Indonesia, a subsidiary of port operator PT Pelabuhan Indonesia II, PT PP Pengadaan, PT PP Urban and PT PP Energy, unit of of construction firm PT PP Tbk (IDX: PTPP), and PT Wika Realty and PT Wika Gedung, both subsidiaries of construction firm PT Wijaya Karya Tbk (IDX: WIKA).
The others, also planning to conduct IPO are GMF, a subsidiary of flag carrier PT Garuda Indonesia Tbk (IDX: GIAA), PT Tugu Pratama Indonesia and PT Patra Jasa, subsidiaries of energy company PT Pertamina and PT Adhi Persada Gedung, a subsidiary of construction PT Adhi Karya Tbk (IDX: ADHI).
GMF Seeks US$300 Million for IPO

Iwan Joeniarto, GMF Director, told reporters on July 20, that GMF plans to offer 30 percent shares to public, targeting to raise up to US$300 million, or equivalent Rp3.9 trillion from the IPO. The IPO proceeds aims to support GMF‘s expansion its services to international market.

Acting as underwriters for this IPO are PT Mandiri Sekuritas, PT Bahana Sekuritas, PT Danareksa Sekuritas, and PT BNI Sekuritas. Iwan said, GMF will propose registration for IPO to the Financial Services Authority on July 31 and the listing on the IDX in September.

GMF will hold a road show for IPO in Singapore, Kuala Lumpur, and Hong Kong. Pahala N. Mansury, President Director of GIAA added, that GMF aims to achieve $454 millions revenue with $69 million net profit margin which has been increased after gained $387 million in 2016 with $58 millions profit margin.GMF recognizes revenue from this service based on agreed tariff in the agreements.

GMF assets recorded $452.56 million per March 2017, higher than Citilink’s assets $355,54 million. Its’ outstanding loan reached $15.18 million, while outstanding balance is $6.04 million.

Availability becomes a concern for GMF caused by aircraft maintenance market growth significantly. One of capacity enhancement will be on Batam, GMF‘s accessibility to Singapore, the aviation center in Asia.

On October 2016, GMF becomes an officially bonded center. It brings an opportunity to GMF to expand the bonded center in Batam. The island considered as a right place to expanding the business and supported by the government.

As a blueprint of expanding its business in Batam, GMF is also widely open an opportunity for partnership. GMF has done a partnership with PT Merpati Maintenance Facility (MMF) for General Aviation Maintenance in Eastern Indonesia, especially in Manado and Biak.

Based at Jakarta Soekarno-Hatta International Airport, GMF AeroAsia counts internationally-renowned airlines from more than 55 countries around the world among its clients. (CS)