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JAKARTA. PT Waskita Beton Precast (WBP) Tbk succeeded to gain US$5.1 trillion fresh funds from initial public offering (IPO). With the result, WBP becomes the company that earned funds the most from IPO during last five years. According to Main Director of WBP Jarot Subana, 70% of the shares were acquired by local investors, while foreign investors took the rests. “
WKBP, which is the subsidiary of PT Waskita Karya Tbk (WSKT) set the price of IDR490 per a share. According to Main Director of WBP Jarot Subana, WBP issued 10.54 billion shares or 40% of issued shares and paid shares. “Our IPO was subscribed three times”, Jarot told Kontan on Friday (9/9).
WBP will allocate the IPO funds for working capital and business expansions. The company will allocate 56% of the funds to run projects related to operational activities and the rest of 44% to fulfil the growing demands for concrete.
The details are: IDR2.15 trillion of funds to be allocated to develop precast factory, IDR400 billion as capital expenditure to develop batching plant, IDR715 billion for equipment purchasing, and IDR300 billion to purchase mixer trucks.
This year WBP will build two new factories in Klaten (Central Java) and Palembang (South Sumatera) with 100,000 tons and 250,000 tons capacities, respectively. According to Jarot, those new factories will increase WBP production capacities to 2.65 million tons. In 2016, this state owned company (SOE) prepares IDR 1 trillion of capital expenditure to develop production.
Next year, WBP will increase production capacity by 600,000 tons. With the amount of production capacity, market share of WBP will rise by 5% from 39% in this year.
WBP that is the elevsenth issuer candidates in Indonesia Stock Exchange (IDX) expects to create amounting IDR8 trillion of new contracts until the end of 2016 year. In 2015, WBP only targeted IDR2.4 trillion of new contracts. Until July 2016, WBP has recorded a worth of IDR6.6 trillion of new contracts.
With the amount of IDR8 trillion of new contracts, WBP targets IDR4.9 trillion revenues this year, or hikes by 36% from IDR3.6 trilllion in the last year. WBP also expects to increase the net profit by 84.7% from IDR335 trillion in 2015 to IDR619 trillion in this year.
Capital gain
Head of Research Department of Koneksi Capital Alfred Nainggolan said that in fundament WBP has shown better performance. Alfred said that since the beginning of WBP IPO, investors had predicted that the IPO will be oversubscribed at premium price.
Normally, oversubscribed during primary market will increase primary share price, as investors who did not take part during the primary market will pursue the shares in secondary market.
Therefore, investors who bought the shares during primary offer may make a capital gain from the price of primary shares. “It is possible to make capital gain. But I think the shares are worth collecting for a long term, since they have high free float ratio”, Alfred said. (Translator: Muhammad Farid)
