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Piling contractor Indopora seeks up to Rp 560b from IPO
Going public: Piling contractor PT Indonesia Pondasi Raya (Indopora) operational director Heribertus Herry Putranto (left), finance director Dwijanto (second left), president director Febyan (second right) and marketing director Albertus Gunawan share a light moment at the public announcement of the companyâs initial public offering (IPO) plans at Hotel Mulia in Central Jakarta on Monday
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Going public: Piling contractor PT Indonesia Pondasi Raya (Indopora) operational director Heribertus Herry Putranto (left), finance director Dwijanto (second left), president director Febyan (second right) and marketing director Albertus Gunawan share a light moment at the public announcement of the companyâs initial public offering (IPO) plans at Hotel Mulia in Central Jakarta on Monday. Indopora is offering 303 million shares, 15.13 percent of its enlarged capital, for prices of between Rp 1,280 (9 US cents) and Rp 1,920 per share.(JP/Jerry Adiguna) (Indopora) operational director Heribertus Herry Putranto (left), finance director Dwijanto (second left), president director Febyan (second right) and marketing director Albertus Gunawan share a light moment at the public announcement of the companyâs initial public offering (IPO) plans at Hotel Mulia in Central Jakarta on Monday. Indopora is offering 303 million shares, 15.13 percent of its enlarged capital, for prices of between Rp 1,280 (9 US cents) and Rp 1,920 per share.(JP/Jerry Adiguna)
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span class="caption">Going public: Piling contractor PT Indonesia Pondasi Raya (Indopora) operational director Heribertus Herry Putranto (left), finance director Dwijanto (second left), president director Febyan (second right) and marketing director Albertus Gunawan share a light moment at the public announcement of the company's initial public offering (IPO) plans at Hotel Mulia in Central Jakarta on Monday. Indopora is offering 303 million shares, 15.13 percent of its enlarged capital, for prices of between Rp 1,280 (9 US cents) and Rp 1,920 per share.(JP/Jerry Adiguna)
Piling contractor PT Indonesia Pondasi Raya (Indopora) is looking to raise up to Rp 560 billion (US$40.7 million) in an initial public offering (IPO) in December to aid its business expansion plans amid optimism on the future of the sector backed by the government's infrastructure push.
Indopora will offer a maximum of 303 million new shares, representing 15 percent of its enlarged capital, at Rp 1,280 to Rp 1,920 apiece, it announced Monday. The price range means Indopora could pocket between Rp 380 billion and Rp 560 billion in proceeds from the IPO.
The offering period will run from Dec. 2 to Dec. 3, before a scheduled stock market listing on the Indonesia Stock Exchange (IDX) on Dec. 9. The company has appointed PT Yuanta Securities Indonesia and PT Minna Padi Investama as underwriters for the new shares issuance.
'The share price is based on the company's price-to-earnings ratio [PER], which is eight to 12 times and is based on projected net profits next year of as much as Rp 333 billion,' Yuanta Securities institutional business head Kurnia Salim said after a public expose at the Hotel Mulia in Central Jakarta on Monday.
Kurnia expected greater share ownership by local investors.
Indopora president director Febyan said at the same event that proceeds from the IPO would be mostly used for expansion, of which 40 percent would be to purchase equipment ' for foundations, retaining wall construction, ground improvement, pile testing and other works ' and 32.4 percent for working capital.
Meanwhile, 10 percent of the IPO proceeds will be used to add capital to Indopora's piles manufacturer subsidiary and the remaining 17.6 percent for land purchase.
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'The share price is based on the company's price-to-earnings ratio, which is eight to 12 times and is based on projected net profits next year of as much as Rp 333 billion.'
'The funds acquired from the IPO will be used for expansion as the company still sees big opportunities for infrastructure development in the country, be it private or government, as infrastructure acceleration is one of the government commitments for the next four years,' Febyan explained.
'As we purchase more assets, we expect the government project proportion to increase. Currently more than 90 percent of the projects we handle are private. We could see it become 70 percent, 60 percent or 50 percent [as the state project proportion increases] in the future, depending on the situation,' she added.
Indopora finance director Dwijanto stated his optimism on the IPO, as the infrastructure sector in general is expected to continue to grow in the future.
'The opportunity is wide enough as the state targets infrastructure acceleration. In Jakarta only, for example, once the MRT is ready, the surroundings will follow with development. [Moreover], Jakarta's soil has become softer so it needs deeper foundations so the chances are still big,' Dwijanto told reporters.
Indopora was founded 38 years ago by Yang Suryahimsa and has been operating in piling, retaining walls and ground improvement for building and infrastructure projects, including high-rise buildings, housings, dams, ports, roads, bridges and underpasses nationwide, primarily on Java.
Last year, it booked Rp 1.27 trillion in revenue and Rp 188 billion in net profit while targeting to reach Rp 1.4 trillion in revenue and Rp 227 billion in net profit by year-end. The company is currently finalizing its September financial statement, which is expected to see revenue of almost Rp 1 trillion. (rbk)
