Indoferro hopes stock market to recover next year to realize IPO plan
Thursday, December 17 2015 - 01:11 AM WIB
PT Indoferro, which operates nickel pig iron (NPI) smelter in Cilegon, Banten, is closely monitoring the stock market condition, hoping that the market will recover by the second quarter of 2016 to allow it to realize its planned initial public offering (IPO) in the second semester.
?If the bourse (is) in good condition, we?ll surely (be) listing (our shares). We?ll see in the second quarter of next year,? said Jonatan Handojo, Director of Business Development at Growth Steel Group, the parent of Indoferro, on Tuesday.
He said that the company and the underwriter are ready to enter the stock market. If the IPO plan is realized, the company is expected to sell up to 30 percent of its shares to the public to raise funds to help finance expansion plan.
As has been previously reported, Indoferro plans to launch an IPO in the second semester of 2016 to raise funds to help finance the construction of a stainless steel plant, with estimated investment of about US$1 billion, about $600 million of which expected to come from the IPO proceeds.
?We?ll prove that Indoferro could build a stainless steel plant with capacity of 1 million tons per year just with investment of less than $1 billion,? Jonatan said.
He added that construction of the stainless steel plant will require the company to increase the production capacity of its NPI smelter to 250,000 tons per year next year as it is schedule to begin the operation of its third furnace in March.
Editing by Reiner Simanjuntak