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Adhi Karya’s subsidiaries to go public
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Adhi Karya president director Budi Harto (third right) poses with other board of directors in Jakarta on May 24. Adhi plans to hold initial public offerings (IPOs) for its three subsidiaries starting from this year until 2020. (JP/Prima Wirayani)
P
ublicly-listed construction company PT Adhi Karya plans to gradually hold initial public offerings (IPOs) for its three subsidiaries from this year until 2020.
PT Adhi Persada Gedung (APG) will be the first subsidiary to go public this year, followed by
PT Adhi Commuter Properti (ACP) and PT Adhi Persada Properti (APP) in 2019 and 2020 respectively.
Adhi Karya finance director, Haris Gunawan, said APG, Adhi’s subsidiary that focuses on high-rise buildings, would make available 30 to 40 percent of its shares to the public. The proceeds would be used for working capital and business development, he added.
“APG will hold the IPO in the second half of 2018,” Haris said on Friday as quoted by kompas.com.
Read also: Government considers asking Adhi Karya to invest in LRTAdhi also plans to spin-off ACP as an independent company before initiating the IPO. The spin-off is scheduled on April 13, but the move will be subject to approval at the company’s general shareholders meeting.
To complete the spin-off, Adhi will need Rp 2 trillion (US$145.2 million) in funds, of which Rp 1.3 trillion will be derived from a rights issue, while the rest will come from its internal cash.
Haris added that APP’s IPO could take place sooner than expected under certain circumstances.
“If the situation is good, the IPO can be held in 2019,” he said. (dpk/lnd)
