State-controlled construction firm Wijaya Karya expects to post a 30 percent higher profit next year. (Antara Photo/Agung Rajasa)

Wika Gedung Postpones IPO to 2nd Half of 2017, Aims at Larger Funding


JANUARY 05, 2017

Jakarta. Wijaya Karya Bangunan Gedung, a subsidiary of state-controlled construction company Wijaya Karya, decided to postpone its planned initial public offering to the second half of 2017 to increase the funding target.

The company, known as Wika Gedung, will now aim for Rp 3 trillion from the IPO, 50 percent higher than Rp 2 trillion it targeted earlier for first half issuance.

"Our shareholders want at least Rp 3 trillion ($225 million), because we will let go of about 30 percent of [our enlarged] capital," Suradi, corporate secretary at Wika Karya, said on Wednesday (04/01).

Wika has yet to appoint an underwriter for Wika Gedung's IPO, he added.

The government has been urging the subsidiaries of state-owned enterprises to raise capital from the stock or bond market, to help in boosting investment and infrastructure development .

Wika also plans to float its property developer Wijaya Karya Realty to raise at least Rp 3 trillion by the end of this year.