TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Waskita seeks up to Rp 3.5t from IPO of subsidiary

State-run construction company Waskita Karya is set to have its precast concrete subsidiary enter the bourse in the second half of next year, with hopes the proceeds from the initial public offering (IPO) would reach Rp 3

Anggi M. Lubis (The Jakarta Post)
Jakarta
Sat, November 28, 2015

Share This Article

Change Size

Waskita seeks up to Rp 3.5t from IPO of subsidiary

S

tate-run construction company Waskita Karya is set to have its precast concrete subsidiary enter the bourse in the second half of next year, with hopes the proceeds from the initial public offering (IPO) would reach Rp 3.5 trillion (US$255.31 million), according to its top official.

Waskita Karya president director M. Choliq said the company was on track for the IPO of its newly established subsidiary Waskita Beton Precast (WBP). Realization of the plan was expected to occur in the second half of 2016.

'€œWe are planning to release around one-third of the total shares of WBP or, probably, around 35 percent,'€ he explained.

By the time of the IPO, Choliq said the book value of WBP was expected to reach between Rp 8 trillion and Rp 10 trillion, meaning that the company aimed to reap between Rp 2.8 trillion and Rp 3.5 trillion from offering its shares in the subsidiary to the public.

Waskita spun off its precast concrete subsidiary in October last year, following massive expansion plans launched in response to growing demand in the domestic market because of a number of infrastructure projects nationwide.

Choliq said that Waskita wanted to benefit from the numerous toll road construction projects by providing precast concrete to them, especially the toll road projects run by the company.

During the first nine months of 2015, WBP has brought in new revenues amounting to Rp 1.62 trillion to its parent company'€™s financial report. The sales figures represent around 22 percent of Waskita Karya'€™s consolidated revenues of Rp 7.42 trillion in the period between January and September.

New sales contributions from WBP, as well as from another newly established subsidiary, Waskita Toll Road (WTR), has helped Waskita to book a 40.53 percent year-on-year growth in its January to September sales, deflecting a trend in the country'€™s construction industry that has been struggling to book growth throughout the period amid an economic slowdown and sluggish infrastructure spending.

Thanks to the growth in its top line, Waskita Karya saw its net profits skyrocket to Rp 400.29 billion during the reported period, in a stark contrast to the Rp 129.15 billion it reported during the same period a year earlier.

Choliq said that WBP had especially benefited from Waskita Karya'€™s Becakayu toll road project.

The Becakayu toll road will connect Bekasi in West Java with Cawang and Kampung Melayu, both in East Jakarta, with total investments expected to hit Rp 5.4 trillion. Construction of the toll road'€™s first section, which will be around 11 kilometers long, began late last year and is scheduled to conclude in 2016.

Choliq had been previously quoted as saying that Waskita Karya would need Rp 10 trillion next year for the development of several toll roads with a total length of 500 kilometers and his company would source the money from proceeds of WBP'€™s planned public offering, among other ways.

Besides WBP, Choliq also said that his company also planned to release the shares of toll road unit WTR, which was also established in late 2014 to support Waskita'€™s massive infrastructure expansion.

Waskita'€™s infrastructure division, according to the company'€™s first nine-month report, contributed new sales totaling Rp 1.5 trillion, 20 percent of Waskita'€™s top line.

However, Choliq said that his company would focus on releasing WBP'€˜s stakes before going forward with its plan to float WTR'€™s shares to the public.

------------------

To receive comprehensive and earlier access to The Jakarta Post print edition, please subscribe to our epaper through iOS' iTunes, Android's Google Play, Blackberry World or Microsoft's Windows Store. Subscription includes free daily editions of The Nation, The Star Malaysia, the Philippine Daily Inquirer and Asia News.

For print subscription, please contact our call center at (+6221) 5360014 or subscription@thejakartapost.com

{

Your Opinion Counts

Your thoughts matter - share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.