Jakarta. Hutama Karya Realtindo, the property developer unit of state construction company Hutama Karya, will double its initial public offering size to Rp 3 trillion ($225 million) and move back the IPO to third quarter this year.
The company, known as HK Realtindo, previously aimed for Rp 1.4 trillion offering in second quarter.
The company's decision came after government encourage state-owned enterprises to be more aggressive in tapping the stock market to help funding their expansion, said HK Realtindo president director Kuntjoro on Monday (10/01).
Last week, peer Wijaya Karya Bangunan Gedung, a subsidiary of state-controlled construction company Wijaya Karya, delayed its planned initial public offering to the second half of 2017 and increased the funding target by 50 percent to Rp 3 trillion.
HK Relatindo has appointed Bahana Securities, Mandiri Sekuritas, Danareksa Sekuritas, BNI Securities and RHB Securities Indonesia as joint underwriters in the IPO.
In 2017, HK Realtindo would focus on developing areas around Trans Sumatra Toll Road, a project that is being carried out by its parent Hutama Karya. HK Reatindo set aside Rp 1 trillion to acquire lands in Lampung, Jambi, Palembang and Pekanbaru, Kuntjoro said.