JAKARTA (TheInsiderStories) - State owned companies (SOEs) are planning to raise funds up to Rp65 trillion this year through issuing bonds, the proceeds of which will be used to refinance matured debts as well as funding their projects. In addition to issuing bonds, as many as 9 subsidiaries of SOE are being prepared to launch initial public offering (IPOs) in the immediate future, a senior official at the State Owned Enterprise Ministry said.
Deputy SOE Minister for Restructuring and Business Development Aloysius Kiik Ro said that the ministry has set three ways for the SOEs to raise funds, namely through issuing bonds, rights issue as well as launching IPOs. “As for this year, we are assessing a plan to issue bonds for refinancing. The total amount (to be raised) is amounting to Rp65 trillion,” he said.
He said state owned companies engaging in property sector will raise funds through rights issue.
As for IPO, the SOE Ministry plans to launch IPO of 9 subsidiaries of State Owned Companies. The total shares to be offered would be in the range of 20 to 30 percent. Aloysius Kiik Ro said among subsidiary firms that will be offered via IPO are including PT Tugu Pratama, an general insurance company controlled by state energy company PT Pertamina and GMF Aero Asia, a subsidiary of flag-carrier Garuda Indonesia and PT Pelindo 2 Jasa Armada, a subsidiary of Pelindo II, the operator of international port Tanjung Piok.
The SOE Ministry is targeting to raise Rp21 trillion from the IPOs. The size and timing of the IPO are yet to be determined pending on the completion of assessment and market condition. “The size of the IPOs are subject for discussion. The total value is targeted at Rp21 trillion, consisting of nine (subsidiary) companies, with possibility of additional one or two companies,” Kiik Ro said.
Currently, there are 20 state owned companies that have partially listed on the Indonesian Stock Market (IDX), with market capitalization of around 26%.
In addition, he said, some SOEs, in particular those engaging in property sector, could raise funds via asset securitization, with target funds of Rp5 trillion. The financing scheme is suitable for companies whose future cash flows are securitized. (*)