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Wika expects Rp 2t from Wika Realty’s IPO next year
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Wijaya Karya booth during Indonesia Infrastructure Week in Jakarta on Nov. 10. (JP/Anton Hermansyah)
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tate-owned construction company Wijaya Karya (Wika) plans to sell shares of its real estate subsidiary Wijaya Karya Realty in the first quarter next year with a goal of Rp 2 trillion (US$152.3 million).
Wika operational director Destiawan Soewardjono said the company would release up to 30 percent of the shares to the market. The funds will be used mainly for strengthening the business by taking over other companies and buying new land.
"We are looking for companies related to real estate, such as cable making and property management. If the price is right, we will buy," Destiawan said during Indonesia Infrastructure Week in Jakarta on Thursday.
He said the company had 254 hectares of land, 215 ha of it has yet to be developed. Most of the land is located outside Jakarta, such as in Bali, Balikpapan, Makassar and Medan.
To prepare Wika Realty for the initial public offering (IPO), he added, Wika will add Rp 1.1 trillion to the subsidiary, raising its equity position to Rp 2.1 trillion.
"When Wika Realty is finished, we will prepare another subsidiary, such as Wika Gedung [building construction subsidiary] for an IPO too," he said. (evi)
