Indonesian state-owned construction company Brantas Abipraya targets to conduct an initial public offering (IPO) on the Indonesia Stock Exchange in 2018. Suradi Wongso, Finance Director of Brantas Abipraya, said the company plans to offer 30 percent of its total share capital to the public through this corporate move, collecting IDR 3 trillion (approx. USD $226 million) along the way.
Currently, Brantas Abipraya is determining its business focus for the period after the IPO as investors need to know where the IPO funds will go. After determining this focus, the company will request permission from the Ministry of State-Owned Enterprises, Ministry of Finance, and the House of Representatives (DPR) to go public in Indonesia. A state-owned company in Indonesia requires approval from these three institutions before being able to become a listed company.
Brantas Abipraya, founded in 1980 as the result of the Brantas River Development Masterplan, is a general contractor that offers construction services including dams, roads, bridges, seaports and airports. The company has offices across Java, Sumatra, Kalimantan and Sulawesi (in the cities Medan, Jakarta, Surabaya, Makassar, Samarinda, Padang, Pekanbaru and Banjarmasin).
The management of the company earlier wanted to go public near the end of 2017. However, being a state-owned company, it requires plenty of time to obtain all approvals and permits. Hence, the management decided to delay its IPO plans for a few months.
Currently, Brantas Abipraya is developing 17 micro hydro power plants (a type of hydroelectric power that uses the natural flow of water) as well as one solar power plant. Suradi Wongso added the company has plans to expand its toll road business segment. The company is currently in the middle of forming a consortium with Jasa Marga and Waskita Toll Road in a bid to construct the Probolinggo-Banyuwangi toll road (170.3 kilometers) in East Java.