Wika Beton to Launch IPO in 2014

Adhi Karya laborers work at a construction site in Jakarta in this file photo (AFP Photo/Bay Ismoyo)

Wika Beton, a unit of state-controlled builder Wijaya Karya, has appointed four brokerage companies as financial advisers to help manage its initial public offering in the first quarter of this year.

Entus Asnawi, finance director at Wika Beton, said the company has named Bahana Securities, Mandiri Sekuritas, Danareksa Sekuritas and Sucorinvest Central Gani as the underwriters for the IPO.

“We will sell more than 20 percent in the IPO,” Entus said, declining to provide further details about the plan.

The management of Wika Beton met officials of the Indonesia Stock Exchange (IDX) in Jakarta on Thursday on their IPO preparation.

Hoesen, a director at IDX, said the company will use the September financial report for the IPO, indicating that Wika Beton has until the end of March to do its IPO.

According to a report by Reuters in December, Wika Beton aims to build four new factories. The company’s website said that it currently has eight plants where they produce construction products like bridges, concrete poles, and high-pressure pipes.

The company said it expects revenue of Rp 2.4 trillion ($200 million) in 2013, up from Rp 2 trillion a year earlier. This year, the company is targeting revenue growth of 20 percent supported by infrastructure projects boosted by the government.

Wika Beton would be among the first companies to do their IPOs in the first quarter this year.

Graha Layar Prima, operator of cinema chain Blitzmegaplex, and Intermedia Capital, a company that controls television channel ANTV, have also informed the IDX about their intention to have a IPOs in the first quarter.

The IDX is targeting 30 IPOs this year. So far, there are four new companies being listed at the local bourse, including Panin Bank Syariah, the first Islamic banking unit to be listed here.

Shares of Wijaya Karya rose 0.5 percent to Rp 1,950 on the IDX on Thursday.