Jakarta. Subsidiaries of four state-controlled companies 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, a senior official at the Ministry of State-Owned Enterprises said.
Aloysius Kiik Ro, deputy for restructuring and business development at the ministry, said the companies that will have initial public offerings this year are Garuda Maintenance Facility Aero Asia (GMF Aero Asia), a subsidiary of national flag carrier Garuda Indonesia; PP Presisi, a subsidiary of construction firm PP; Jasa Armada Indonesia, better known as IPC Marine Service, a unit of port operator Pelabuhan Indonesia (Pelindo) II; and Wika Gedung, a unit of construction firm Wijaya Karya (Wika).
"GMF Aero Asia will lead with the first IPO in October, followed by PP Presisi and Jasa Armada Indonesia. Wika Gedung will be the last one [to go for an IPO] in early December this year," Aloysius told reporters in Jakarta on Tuesday (29/08).
In March, Aloysius said the government was aiming to see nine subsidiaries go for IPOs this year, among them Tugu Pratama Indonesia, PP Energi, PP Urban Precast and Wika Realty.
However, he said this week that more than half of the nine companies are likely to delay their IPO plans due to, among other issues, the need to restructure their businesses and management. Aloysius said their IPOs are likely to be delayed until next year.
Citing Tugu Pratama Indonesia as an example, he said before offering its shares to the public, the company will restructure its business, including appointing a new president director, while Wika Realty – a subsidiary of Wika – will only proceed with its IPO in the first quarter of next year.
Previous reports stated that GMF Aero Asia was planning to raise between $200 million and $300 million from its IPO through the sale of 30 percent of its equity. The proceeds will be used to finance business expansion, including the acquisition of new technology for its repair, maintenance and overhaul facility.
The company has appointed BNI Sekuritas, Bahana Sekuritas, Danareksa Sekuritas and Mandiri Sekuritas as underwriters.
PP Presisi, previously known as PP Peralatan, is meanwhile seeking to raise about Rp 3 trillion in fresh funds through the sale of 30 percent to 35 percent of its equity in the fourth quarter. The company appointed Danareksa Sekuritas, Bahana Securities, Mandiri Sekuritas and CIMB 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.
The company will use the entire proceeds for business expansion.