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14 April 2021 (closed)
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Precast concrete producer Waskita Beton Precast is expected to raise IDR 5.16 trillion (approx. USD $391 million) from an initial public offering (IPO) on the Indonesia Stock Exchange. As such, the IPO of the company, a unit of listed state-controlled construction company Waskita Karya, could be the biggest offering of the past five years. After the book-building process has been completed, the price of one Waskita Beton Precast share is expected to be IDR 490 a piece. However, the final price will be announced on 1 September 2016.
Waskita Beton Precast will offer 10.54 billion new shares, or 40 percent of its enlarged capital, with an indicative price that ranges between IDR 400 - 500 per share (reflecting a price-to-earnings ratio of between 20 - 25 times). Listing on the Indonesia Stock Exchange (IDX) is scheduled for 20 September 2016. Lead underwriters are Bahana Securities, Danareksa Sekuritas, and Mandiri Sekuritas.
Earlier, Jarot Subana, President Director of Waskita Beton Precast, informed that 56 percent of proceeds that are obtained through the IPO will be used to finance a number of projects labeled as "turn key" (including the development of four new plants) and for the purchase of basic materials. The remaining 44 percent will be allocated to capital expenditure.
Waskita Beton Precast targets to book IDR 4.9 trillion (approx. USD $374 million) worth of revenue in 2016 and IDR 620 billion (approx. USD $47 million) in net profit this year, which would imply an 87.9 percent (y/y) jump from IDR 330 billion in net profit generated in the preceding year. Meanwhile, the company targets to collect IDR 8 trillion in new contracts in 2016. In the first seven months of the year it already collected IDR 6.6 trillion of new contracts and therefore it should achieve its full-year target. Meanwhile, Waskita Beton Precast targets to collect IDR 9 trillion in new contracts in 2017, partly from sections of the Trans Sumatra and Trans Java toll road projects.
Mandiri Sekuritas expects that investors will absorb all shares offered in the IPO. Waskita Beton Precast is a profitable company and due to its connection to the central government (its parent company Waskita Karya is state-controlled) it can be involved in the government-led infrastructure projects that are handed to Waskita Karya. Moreover, there are few IPOs in Indonesia this year and this should boost appetite for those companies that do list on the IDX (in case they have solid fundamentals).