Waskita Beton Targets 5.27 trillion for IPO

Waskita Beton Precast (WBP), a subsidiary of Waskita Karya Tbk (WSKT), is targeting 5.27 trillion from the 10.54 billion shares sales. WBP’s IPO price is 400 IDR-500 IDR which reflects the PE 15 times -18.5 times from estimated revenue in 2017.

The IPO funds will be used for turnkey projects and capital expenditures for expanding the capacity of precast concrete production.

In their prospectus, WBP mentioned that the portion of IPO funds which is allocated for working capital reached 56% or 2.95 trillion IDR while the portion of capital expenditure reached 44% or 2.3 trillion IDR. Total of WBP’s capital expenditure reached 3.65 trillion IDR, so the remaining capital expenditure of 1.26 trillion IDR will be covered by the internal cash. WBP’s IPO will be held on 9-14 September 2016.

Maxi Liestyaputra, an Analyst of BNI Securities, said that WBP’s IPO will give a positive impact to the company because the funds can be used for long-term business expansion. WBP’s business prospect is good because they have been supplying the building materials which are necessary for many infrastructure projects in Indonesia.

WBP’s Capital Expenditure Requirement:
1. 2.15 trillion IDR for precast factory expansion
2. 400 billion IDR for batching plant expansion
3. Major equipment purchases, such as stone crusher, excavator, bulldozer, and wheel loader, total 715 billion IDR
4. 300 billion IDR for truck mixer purchases