JAKARTA (TheInsiderStories) – Indonesian developer PT PP Presisi, unit of state-owned construction firm PT PP Tbk (IDX: PTPP) to raise around Rp 2.5 trillion (US$185.85 million) from an initial public offering (IPO) in this year. The company appointed PT Danareksa Sekuritas, PT Bahana Securities, PT Mandiri Sekuritas and PT CIMB Sekuritas as underwriters.
President director Tumiyana said on Wednesday (4/10), beside PP Presisi, two other units, low-cost-housing developer PT PP Urban and power-plant builder PT PP Energy, will also tap the capital market in 2018.
Previously, Aloysius Kiik Ro, deputy for restructuring and business development at the ministry stated, four state-controlled companies’s unit will go public in the fourth quarter of this year, seeking to raise a combined total of Rp 11.1 trillion ($83 million) in fresh funds for business expansion.
The companies that will have initial public offerings this year are PT Garuda Maintenance Facility Aero Asia (GMF Aero Asia), a subsidiary of national flag carrier PT Garuda Indonesia Tbk (IDX: GIAA), PP Presisi, PT Jasa Armada Indonesia, a unit of port operator PT Pelabuhan Indonesia II and PT Wika Gedung, a unit of construction firm Wijaya Karya Tbk (IDX: WIKA).
“GMF Aero Asia will lead with the first IPO in October, followed by PP Presisi and Jasa Armada Indonesia. Wika Gedung in early December this year,” Aloysius told reporters in Jakarta on August 29.
In March, Aloysius said the government was aiming to see nine subsidiaries of SOEs go for IPOs in this year and the coming year. However, he said their IPOs are likely to be delayed until next yea due to, among other issues, the need to restructure their businesses and management.
GMF Aero Asia was planning to raise between up to $300 million from its IPO through the sale of 30 percent of its equity. The company has appointed BNI Sekuritas, Bahana Sekuritas, Danareksa Sekuritas and Mandiri Sekuritas as underwriters.
Jasa Armada Indonesia seeks to raise Rp 2.5 trillion from the sale of 30 percent of its equity. The proceeds will go towards business expansion.
Wika Gedung expects to raise between Rp 3 trillion and Rp 3.5 trillion from the sale of a 30 percent to 35 percent stake. The company has appointed Mandiri Sekuritas, Bahana Securities and CIMB Sekuritas as underwriters for the IPO.
Recently, IDX Director of Corporate Valuation Samsul Hidayat explained that three of them are subsidiaries of SOEs which have registered on the bourse: PP Presisi, Wika Gedung and GMF AeroAsia.
SOE units like PT PP Urban and PT PP Energy (subsidiaries of state-controlled builder PT PP Tbk), property developer PT Wika Realty are also stampeding to become public companies by the end of this year. Another is insurance company PT Tugu Pratama Indonesia (a subsidiary of PT Pertamina) and PT Adhi Persada Gedung, a subsidiary of construction firm PT Adhi Karya Tbk (IDX: ADHI).
PP Presisi on May 26, 2004 and became a subsidiary company of PTPP. PP Presisi is a construction services company based on product differentiation including civil and building construction with six main business lines: civil works, ready mix, foundation work, erector, formwork, and heavy equipment rental.
The compay is committed to develop its business continuously in construction sector by providing the customer needs in one place (one stop service), knowing customer needs, and improve services in all areas of construction.
Writing by Linda Silaen, Email: email@example.com