Indonesian state-owned construction firm raises 5.1 tln rupiah in IPO

JAKARTA - Indonesia’s PT Waskita Beton Precast (WBP), a subsidiary of state-owned construction firm PT Waskita Karya, yesterday raised 5.1 trillion Indonesian rupiah (est $380 million) in an initial public offering (IPO) of 40 percent of its shares on the Indonesia Stock Exchange (IDX), the company said in a statement.

WBP sold 10.5 billion shares at 490 rupiah ($0.03) each. The IPO was three times oversubscribed, said the company.

Its stock price rose 19.4 percent to 585 rupiah per share on its debut yesterday.

The company said it will allocate 46 percent of the money raised from the IPO to capital expenditure and the rest to working capital.

WBP is the twelfth listed company on the IDX this year.

SHARIAH-COMPLIANT

WBP’s shares were certified Shariah-compliant last week by Indonesia’s Financial Services Authority (OJK).

The decision was issued following results of OJK's review on the Registration Statement submitted by the company, M Noor Rachman, OJK deputy commissioner for capital market supervision II, told Salaam Gateway.

“By this latest Shariah-compliant securities issuance, the number of Shariah-compliant securities at the present stands at 326 stocks, equal to 54.4 percent of total stocks,” said Rachman.

This is an increase from July 2016 when there was a total of 325 Shariah-compliant stocks, which made up 51.21 percent of all stocks in the capital market. However, this is down from 331 Islamic stocks in 2015.

Total capitalization of the Indonesia Sharia Stock Index was 3.17 quadrillion rupiah at the end of July, according to OJK data. This represents an increase of 22 percent from 2.6 quadrillion rupiah at the end of 2015.

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