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23 November 2020 (closed)
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Pembangunan Perumahan (PP), a government-controlled construction company, revised the initial public offering (IPO) plans for its subsidiaries. Originally, the company planned to list three units on the Indonesia Stock Exchange in 2017. However, based on the latest statements of the management of PP, only one unit - PP Presisi - will conduct an IPO before the end of 2017.
The other two units of Pembangunan Perumahan (PP), to wit PP Energi and PP Urban, are scheduled to make their debut on the Indonesia Stock Exchange in the first half of 2018.
Tumiyana, General Director at PP, said the postponement of the IPOs of these two units is related to the many state-controlled companies that are lining up to go public in the last couple of months of 2017 in Indonesia. Therefore, investors have too many state-owned enterprises to choose from and thus it is regarded more lucrative to list next year. Tumiyana emphasized that the delay is not caused by the possible unpreparedness of both subsidiaries to list.
The only PP unit that will conduct an IPO this year is PP Presisi. Based on information provided on its official website, this construction services company has six main business lines: (1) civil works, (2) ready mix, (3) foundation work, (4) erector, (5) form-work, and (6) heavy equipment rental. On 6 September 2016 PP Presisi registered at Indonesia's Financial Services Authority (OJK) in preparation of the IPO.
PP Presisi will offer a 35 percent stake to the public and targets to collect up to IDR 3 trillion (approx. USD $225 million) through this corporate move. About 70 percent of the funds that are collected from the IPO will be used for investment. The remainder will be used as working capital. The company appointed Danareksa Sekuritas, Mandiri Sekuritas, Bahana Sekuritas, and CIMB Sekuritas as underwriters.
Shares of parent company PP have tumbled 30.45 percent to IDR 2,640 a piece so far in 2017. On Wednesday (20/09) its shares rose 0.76 percent.
Stock Quote Pembangunan Perumahan (PP) - PTPP: