"The number of shares to be floated is still being discussed. But it may be about 30 percent of our shares. We will try to make the IPO in the third quarter, the sooner the better," PT Semen Baturaja President Director Pamudji Raharjo said on the sidelines of a meeting between 141 boards of directors and commissioners of state-owned companies and the State Audit Board (BPK) here on Tuesday.
PT Semen Baturaja was in the process of appointing stock issue underwriters, he said.
Proceeds from the IPO would be used to build a new plant to increase the company`s production capacity, he said without elaborating on the amount of funds the company would receive from the IPO.
He said the company would need around Rp2.5 trillion in funds this year to build a new plant in South Sumatra, among others.
"The new plant will have an annual production capacity of 1.5 million tons. Preparations for the construction of the plant will be started next year and the plant will hopefully start operating in 2015," he said.
With the operation of the new plant, the total production capacity of the cement maker would increase to 3.5 million tons per year in 2014, he said.
The company has set the target of cement production for 2012 at 1.3 million tons compared to 1.25 million tons last year.
(Uu.S012/H-NG/H-YH)
Editor: Priyambodo RH
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