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LCK Global Kedaton launches on bourse
Go public: Malaysian deputy ambassador to Indonesia Nurul Aishah Md
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span class="inline inline-center">Go public: Malaysian deputy ambassador to Indonesia Nurul Aishah Md. Yunus (second right) talks to LCK Global Kedaton (LCKM) president director Lim Kah Hock (second left) after the company’s listing of shares at the Indonesia Stock Exchange (IDX) in Jakarta on Tuesday while LCK Global Kedaton president commissioner Lim Chim Kim (right) and Mirae Asset Sekuritas Indonesia president director Ryoo Sung LCKM offered 200 million shares with a total value of Rp 41.6 billion (US$2.91 million), 97 percent of which will be used to finance its working capital, while the rest will be allocated for research and development as well as training. (JP/Ben Latuihamallo)
Telecommunications tower construction company PT LCK Global Kedaton (LCKM) is seeking to expand its business and boost revenue after reaping fresh funds from its initial public offering (IPO) on Tuesday.
After the IPO on Tuesday, the company cashed in Rp 41.6 billion (US$3.12 million) from the release of 200 million shares to the public at Rp 208 per share.
“From the IPO proceeds, 97 percent will be used for working capital and 3 percent for research and development and training,” LCKM president director Lim Kah Hock said at the Indonesia Stock Exchange (IDX) building.
LCKM expects to book between Rp 120 billion and Rp 140 billion in revenue in 2018, almost double the Rp 72 billion in the full year of 2017.
In line with revenue, it hopes to increase its net profits by 50 percent this year, from the profit realization of Rp 9 billion to Rp 10 billion, Ruben said.
“We will partner with more tower providers to reach the targeted revenue,” LCKM finance director Ruben Partogi said at the IDX.
The company’s optimism about reaching its goals is backed by the expectation that the outlook for telecommunications towers in 2018 will be in line with the progressive development of the long-term evolution network in several big cities.
Other than that, the factors that could support the development of the telecommunications sector are the wide internet penetration in Indonesia, fast expansion of the digital economy and rising mobile phone user numbers.
LCKM engages in telecommunication construction services, especially in site information survey, site acquisition, and civil, mechanical and electrical engineering.
The company acts as a subcontractor for tower providers, mainly specializing in the construction of telecommunication infrastructure.
It has previously collaborated with tower providers such as PT Kreasindo Utama Jaya Solution, PT Inti Bangun Sejahtera, PT Tower Bersama Group, PT Lasmana Swasti Prashida and PT Triview Geospatial Mandiri.
Together with its partners, LCKM has built towers for major telecommunications companies XL Axiata, Telkomsel, Hutchinson 3 Indonesia (H3I) and Smartfren.
LCKM’s current projects are spread across Java, Sumatra, Bali, Kalimantan and Sulawesi.
“We plan to collaborate with six tower providers, including PT Komet Infra Nusantara, PT Bali Tower, and other tower projects [...] in 2018,” Ruben said.
According to the latest data from the company, 64 percent of LCKM’s shares are owned by PT LCK Investama Prima Indonesia, 33 percent owned by PT Maju Mekar Makmur, 1 percent by Lim Chin Kim, 1 percent by Kenny Lim and 1 percent by Lim Kah Hock.
LCKM’s shares increased by 50 percent to Rp 312 per share at the bourse’s closing session on Tuesday from the initial listing of Rp 208 per share.
