Totalindo Eka Persada, a construction firm based in Indonesia is looking to raise IDR 1.5 trillion (about US$120 million) from a planned initial public offering (IPO) in what could be the country’s largest issue this year.
The IPO is expected to price on May 22. The company has commenced its pre-deal investor education, which will proceed until May 3, and books are tentatively scheduled to open on May 8.
Bahana Securities and Indo Premier Securities are the local bookrunners and underwriters for the event, along with CLSA. This means that shares issued by Totalindo will be offered to both local and foreign investors.
Established in 1996, Totalindo began its first construction building Taman Anggrek Mall, which is known as the largest superblock in Southeast Asia at the time.
Since its inception, the company has also completed projects like the five-star Hotel Mulia Senayan and Abu Dhabi’s City of Lights Al-Reem project, alongside participation in Cipularang Toll Road, Plaza Indonesia Extension Project and Kalibata City,
Currently, the company provides construction services for various types of projects ranging from residential, hotel, commercial to public services and governmental sectors. In 2016, the firm also completed government projects related to public housing such as Korlantas Polri Houses, Tambora Rusunawa, and KS Tubun Rusun.
Last year, Totalindo booked a revenue of INR 3.16 trillion, representing an almost 200 percent increase from 2014’s revenue of INR 1.05 trillion. The company’s net profit jumped more than 100 percent to INR 201 billion last year.
By Vivian Foo, VCNewsNetwork