Waskita Shelves Bonds Plan After Bumper Rights Issuance
Jakarta. State construction firm Waskita Karya has postponed plans to raise Rp 1.5 trillion ($183 million) from issuing bonds, following a successful rights issue earlier this year.
The company raised Rp 5.3 trillion in June after selling 29.1 percent of its paid up capital.
"This year, we are unlikely to issue bonds, as the proceeds from the rights issue alone are huge enough to [finance the company projects]," said Muhammad Choliq, a director at Waskita.
Choliq said the company plans to issue the bonds next year. The bonds were part of a Rp 2 trillion serial-bonds issuance approved by the Financial Services Authority (OJK).
The company had raised Rp 500 billion last year with help from Bahana Securities.
Waskita will focus on investing in the toll road business this year, Choliq said. Wika is opening bidding to contractors to be involved in the Solo-Ngawi-Kertosono toll road project in Central Java and the Kualanamu-Tebing Tinggi toll road in North Sumatra.
The company booked better-than-expected new contracts so far this year, Choliq said, boosting the company's confidence in increasing a new contracts target to Rp 30 trillion from the initial target of Rp 22 trillion by the end of this year.
Waskita’s net income target this year is set at Rp 800 billion from Rp 650 billion as revenue is expected to exceed the initial target of Rp 15.8 trillion, said Choliq.
Wika revenue grew 25 percent to Rp 3.9 trillion in the first six months this year compared to the same period last year of Rp 3.1 trillion. Its net income almost tripled to Rp 171 billion.
Investor Daily
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