Hutama Karya eyeing Rp1 trillion in IPO

Jakarta (ANTARA News) - State-owned construction company PT Hutama Karya has predicted it would book Rp1 trillion in its initial public offering (IPO) expected to take place this year, its corporate secretary said.

"I hope Hutama Karya would hold IPO this year so that the company would be able to increase its capital," Hutama Karya Corporate Secretary Ary Widyantoro said here on Monday.

Ary said that his side was conducting a study on the planned IPO with shares to be released to the public reaching 40 percent.

He said that his firm needed capital to expand its business and to develop its subsidiaries.

"At present we only have equity amounting to about Rp400 billion so that we need additional funds," he told the House of Representatives (DPR)`s Commission VI on state-owned affairs.

He said that the additional funds would significantly have impact on the corporate financial performance beginning in 2011.

In 2010, the company predicted its net profit would amount to Rp109 billion with an income of about Rp3.29 trillion.

In the meantime, in 2011, it predicts a profit of Rp150 billion with an income of Rp4.6 trillion.

Ary said that if the IPO could be implemented in 2011 the net profit could reach Rp337 billion with an income of Rp7 trillion.

Ary admitted that all of the financial plans would depend on the Ministry of State-owned firms (BUMN), whether or not it would include Hutama Karya in the 2011 IPO list.

Previously there was an indication that the IPO would not be realized this year due to the emergence of dispute over the Jakarta Outer Ring Road (JORR) projects.

He predicted that the firm would obtain a contract worth Rp10.97 trillion in 2011, increasing from that in 2010 which stood at Rp9.54 trillion.(*)