Jakarta. State-controlled construction firm PP has doubled the target for raising funds from the capital market to Rp 15 trillion ($1.1 billion) next year from selling new shares in its four subsidiaries.
The company earlier said it plans to raise Rp 7.9 trillion from right issue of property developer unit PP Property as well as initial public offering of heavy machinery distributor PP Peralatan Konstruksi, a concrete precast manufacturer PP Precast, and a utility subsidiary PP Energi.
Now, PP plots Rp 1.6 trillion right issue for PP Property, PP's president director Tumiyana said on Tuesday (06/12).
PP Peralatan eyes to raise Rp 3.5 trillion in an initial public offering next year, he said.
Other IPO in the pipeline include PP Precast, which aims to raise Rp 3.8 trillion and PP Energi, a utility subsidiary, that seeks Rp 6 trillion. PP set up PP Energi in August in order to tap into the government's utility project targeting to build 35,000 megawatts of additional power capacity by 2019. In September, the utility won Rp 8 trillion worth of contract to build 400 megawatt power plant in Meulaboh in Aceh.
Tumiyana said that PP plans to let go between 30 percent and 35 percent of control in the three subsidiaries IPO.
The rights issue and IPOs are part of PP efforts to raise Rp 26 trillion for capital expenditure next year. The company has estimated that it would need Rp 174 trillion over the next four years to expand in sectors like infrastructure, affordable housing and utility, with the last being PP's main growth driver.