Indonesian state-run cement maker Semen Baturaja plans to raise up to IDR1.6trn (US$163m) from an initial public offering next month to finance expansion as its existing production base nears maximum utilisation levels.
State Enterprises Ministry's deputy head of restructuring and strategic planning, Wahyu Hidayat, that the indicative share prices of between IDR500-685 has been approved, according to reports in the Jakarata Globe.
The South Sumatra-based company is selling 2.34 billion shares, or 23.8 per cent of its enlarged capital. It is expecting to fetch between IDR1.17trn and IDR1.6trn from investors.
Bookbuilding began on Wednesday and will continue until June 7, with the shares to be offered from June 20 to 24. Semen Baturaja said the shares will be listed on the Indonesia Stock Exchange on June 28.
Semen Baturaja is planning an extra 1.85Mt of capacity at its Baturaja works from the current 1.25Mt. It is also investing in a 750,000tpa cement grinding mill.
With the government pledging to increase infrastructure development, and the trans-Sumatra toll road underway, the company is confident demand for cement would continue.
