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nvestment company PT Saratoga Investama Sedaya plans to use the majority of the proceeds from the company’s initial public offering (IPO) later this year to further expand its equity investment.

Saratoga president director Sandiaga Uno said the company would invest funds from the IPO in three main business sectors, namely infrastructure, consumer goods and consumer services, plus natural resources.

“The numbers relating to consumer goods and consumer services are phenomenal. Meanwhile, although current commodity prices remain low, it is a potential investment for the future,” Sandiaga said after a presentation of the IPO plan at the Indonesia Stock Exchange (IDX) on Wednesday.

“We will invest in the sectors by increasing [our stakes in our current subsidiaries] or by making fresh investments in the three areas. We are actively seeking new opportunities but cannot yet say what are our targets,” Sandiaga added.

Infrastructure projects are booming across the country on the heels of the government’s ambitious Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI). Infrastructure-related sectors have also recorded significant growth such as the cement sector, which saw 14.5 percent growth in national sales last year.

Positive sentiment in the sector has boosted stocks in infrastructure-based listed companies. The index of infrastructure stocks has surged 16.42 percent year to date, according to figures provided by the IDX on Wednesday.

Meanwhile, the consumer goods index grew 14.09 percent year to date, reflecting confidence in household consumption due to people’s increasing purchasing power.

Saratoga has a diverse portfolio, including ownership of coal miner PT Adaro Energy; telecommunication tower operator PT Tower Bersama Infrastructure; power company PT Medco Power Indonesia; plantation firm PT Provident Agro; flag carrier Mandala Airlines; and motorcycle distributor PT Mitra Pinasthika Mulia (MPM).

Sandiaga declined to reveal how much Saratoga expected raise from the IPO, although reports have suggested that the company is seeking around US$200 million.

“I can neither confirm nor deny that [the reports]. However, we have determined that it will be a very significant amount,” he said.

Sandiaga had said previously that Saratoga would likely off-load new shares totaling 10 to 15 percent of its enlarged capital. The company is expected to complete the IPO during the second quarter and has appointed PT Indo Premier Securities along with UBS AG, Morgan Stanley and DBS to manage the offering.

Apart from its own IPO, Saratoga will also see one of its subsidiaries, MPM, entering the bourse. According to Sandiaga, Saratoga currently holds a 50 percent stake in Mitra Pinasthika Mustika, which is expected to go public sooner than its parent company. “We will maintain our strategic position,” Sandiaga said when asked whether Saratoga would increase its stake in MPM by purchasing shares during the motorcycle distributor’s IPO.