Concrete Maker Plans Biggest Indonesia IPO Since 2010by and
Waskita Beton Precast to sell up to $402m of stock this month
Company to offer as much as 10b shares at 400-500 rupiah each
PT Waskita Beton Precast is seeking to raise as much as $402 million in what could be Indonesia’s biggest initial public offering in six years.
The company, which produces precast concrete slabs, plans to sell 10.54 billion shares at 400 to 500 rupiah each, Donny Arsal, a director at PT Mandiri Sekuritas, one of the arrangers, said at a press conference in Jakarta on Wednesday. That would be the largest IPO since PT Indofood CBP Sukses Makmur raised 6.29 trillion rupiah ($480 million) in October 2010, data compiled by Bloomberg show.
Waskita Beton Precast is set to join a host of local firms including PT Krakatau Steel and PT Tambang Batubara Bukit Asam that are planning share and bond sales to take advantage of the 560 trillion rupiah of funds the central bank estimates will be repatriated as part of a tax amnesty program running through March 2017. The Jakarta Composite Index has rallied 18 percent this year, the most in Southeast Asia after Thailand, amid increased government spending, falling interest rates and more stimulus from developed nations.
The unit of state-owned construction company PT Waskita Karya will offer the shares from Aug. 10 through 26, with a planned listing date for Sept. 20, it said in a statement on Wednesday. The company is targeting 8 trillion rupiah of new contracts this year, and has already won 6.6 trillion rupiah of that, President Director Jarot Subana said in Jakarta. PT Bahana Securities and PT Danareksa Sekuritas are also underwriting the offer.
Waskita Precast is offering 40 percent of its equity. The IPO values the company at 10 trillion to 13 trillion rupiah, Subana said in Jakarta. The shares are being offered at 20 to 25 times estimated earnings for 2016, Mandiri’s Arsal said.