PT HK Realtindo, subsidiary of state-owned EPC firm PT Hutama Karya, is one of subsidiaries of SOEs prepared for an initial public offering (IPO) next year. We interviewed Koentjoro, the newly appointed chef executive officer of HK Realtindo about the IPO and other plans.
Q: Please update us on the IPO preparation…
A: We have been preparing everything for the IPO. We have to proceed with the plan because our competitors have gaining grounds. The fastest will be in April 2017 or first half of next year so we can use financial results 2016 as the basis of IPO.
Q: How big is the IPO?
A: We’re targeting Rp1.4 trillion from the IPO of between 30% and 35% shares. We hope to grow faster from then on.
Q: What to do with IPO proceeds?
A: Acquisition of land bank, working capital, and other acquisitions.
Q: How big is your land bank?
A: We have around 200 hectares in Lampung (Sumatra) from a plan to develop 1,000 hectares. We will also acquire 100 out of 600 hectares in Palembang (Sumatra) and 200 out of 1000 hectares in Riau (Sumatra).
Q: Acquisitions?
A: We’re targeting assets with proper licenses but yet to be developed. We need to grow faster from inorganic growth.
Q: Where are locations of the acquisitions?
A: Surabaya (East Java), Bintaro (Greater Jakarta), and Jakarta itself.
Q: All of them are land banks?
A: Some are property projects looking for partners. Instead of becoming partner, we prefer to acquire the projects.
Q: What kind of property projects?
A: We’re targeting mall and office project in Surabaya and mix-use property project in Bintaro.
Q: Acquisition costs would be higher?
A: We’re talking about a combined acquisition cost of Rp2.5 trillion. Portion of which will be financed with IPO proceeds, issuance of medium term notes (MTN), mezzanine facilities. The mezzanine facilities will be completed earlier in December 2016.
Q: The MTN?
A: We’re working on Rp600 billion three-year MTN in the second half of this year.
Q: Profitability target?
A: We’re expecting between Rp170 billion and Rp200 billion of net profit this year. In the first half we booked between Rp70 and Rp80 billion already.
Q: What ongoing projects would support the profit target?
A: We’re working on Olympic Residence in Sentul, landed house in Sawangan, Amethyst Tower and Sapphire Tower apartments in Kemayoran,
by Abdul Kharis
DISCLAIMER: NO POSITION IN STOCKS MENTIONED IN THIS ARTICLE
