Wika Gedung's human capital and investment development director, Nur Al Fatah, said recently his company, which had completed 95 percent of the administrative requirements for the IPO, was still waiting for approval from its shareholders in a general shareholder meeting.

"We finished last Friday the auditing of the company’s financial report as of June 2017 and we will organize a meeting with analysts this week," he said. “If we can finish the process, we will most likely do the IPO in November.”

Nur, who is also the head of his company's IPO team, said his company decided to raise fresh funds through the IPO after studying the prospects of the infrastructure sector in the country.

The company, he said, would use the fresh funds to expand its business by, for example, participating in the construction of airports and the development of housing compounds. It will also strengthen its supply chain in the geo-technical sector, he said.

“With the additional funds, we will be able to work on projects worth Rp 10 trillion to Rp 12 trillion,” he said.

In line with Nur, the company’s president director, Nariman Prasetyo, said his company planned to establish a joint venture with a local company for the production of prefab building components for the construction of houses. The company will use a modular development technology, he said.

"We will make house components in our factory in accordance with the designs chosen by customers and then assemble them at the location. In a way, it’s just like playing lego," he said.

He said business in the property sector offered substantial potential income because the demand continued to increase every year.

He further said the government had also opened up the opportunity for construction companies to invest in the development of social infrastructure projects such as hospitals.

"We will also participate in this sector because the prospect is good and it can support the growth of our company," he said.

He added that currently, the demand for hospital beds across the country reached 20,000 beds annually, and was expected to increase to 30,000 beds by 2019.

Nur said Wika Gedung earned Rp 1.92 trillion in revenue in 2016 and secured a net profit of Rp 143 billion. (rdi)

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