Wijaya Karya Tbk (WIKA) is targeting a 45 percent IPO of its subsidiary, Wika Gedung, to generate IDR 3 trillion to IDR 4 trillion. The funds will be used for business development in the field of investment and concession.
Bintang Perbowo, President Director of WIKA, said the company has registered the IPO plan to the Financial Services Authority (FSA). “Before the IPO is implemented, Wika Gedung will acquire several companies to support inorganic growth,” said Bintang. One of the companies that will be acquired is Wika Gedung, which is engaged in foundation and piling, geotechnical, lightweight bricks, and panel companies as well as mechanical electrical plumbing (MEP).
Wika Gedung specializes in the construction of airports, hospitals, office buildings, hotels, apartments, residences, and shopping centers. The acquisition will strengthen the performance of Wika Gedung as a construction company in the category of urban planner and urban builder. In addition, the acquisition will allow the company to provide various needs of WIKA Group that have been supplied from outside.
The IPO will be done in the fourth quarter of 2017 after the implementation of the IPO of Garuda Maintenance Facility Aero Asia (GMF), a subsidiary of Garuda Indonesia Tbk (GIAA). (*)