Comprehensive M&A data with integrated detailed company information
Riscon builds up IPO: ceo
Posted on Wednesday, 06 February 2019 10:49
The chief executive (ceo) of Riscon Victory has made no bones about listing the Indonesian property company domestically with the aim of raising as much as IDR 1,000 billion (USD 71.59 million).
According to the media, Tedy J Sitepu said the housing developer, which is also known as Riscon Realty, is working towards launching an initial public offering (IPO) in the second half of 2019.
However, the group cautioned preparations for a first-time sale of a stake between 20.0 per cent to 30.0 per cent are still in the early stages and a listing is dependent on macroeconomic conditions.
In the meantime, Riscon will focus on strengthening its internal structure by working with advisors on good corporate governance.
The listing is seen as a strategic step towards funding that is more flexible, and ought to create financial transparency and increase investor confidence.
Riscon intends to use 80.0 per cent of the proceeds for land banks and 20.0 per cent for operational purposes, such as development.
Sitepu, cited by Ekonomi, noted the proposed listing needs shareholder approval but the 15-year-old company has already started exploring and reviewing listing requirements.
Riscon ‘s total assets exceeded IDR 1,000 billion as at June 2018 due to a surge in sales in the first half of 2018 to IDR 146.00 billion, compared to IDR 71.00 billion in H1 2017.
Net profit was also up over the same timeframe at IDR 39.30 billion from IDR 25.50 billion.
The proposed listing comes after IPOs by Indonesian companies last year was the highest on record by volume and the largest since 2013 by value, according to Zephyr, the M&A database published by Bureau van Dijk.
Zephyr shows four listings have already completed in 2019 to date: the biggest so far was by fellow property developer Pollux Investasi, which raised USD 46.63 million.
Within the country’s residential building construction and land subdivision category, there have only been 41 IPOs announced or completed since records began.
© Zephus Ltd