Jakarta (ANTARA Mews) - State construction company PT Waskita Karya will launch initial public offering (IPO) floating 35 percent of its share .

The company hopes to raise up to Rp1.2 trillion from the IPO with listing on Dec 19, Minister for State Enterprises Dhalan Iskan said here on Tuesday.

The company would sell 3,082,315,000 sharer at a price of Rp320-Rp405 per piece, Dahlan said.

He said the IPO is oversubscribed with demand for shares already twice as many as offered.

Dahlan said he is optimistic the market would take all of the shares being offered with the prospects the price would rise post listing.

He said Waskita Karya would not use foreign underwriters in the IPO.

The joint lead underwriters are PT Danareksa, PT Mandiri Sekuritas, and PT Bahana Securities - all state firms.

Waskita Karya`s president M Choliq said the fund to be raised from the IPO would be used to finance business expansion and working capital.

"Around 40 percent of the fund would for business expansion and 60 percent to finance on-going projects," Choliq said, adding around Rp450 billion would be used to finance property and real estate projects and the rest for construction of toll roads and concrete factory.

Meanwhile, Waskita general manager Agus Sugiono said with the IPO, the targets set for 2013 would be achieved.

In 2013, the company sets income target at Rp11.5 trillion , up from this year`s target of Rp9 trillion.

Its net profit target set for 2013e is around Rp250 billion , up from 2012`s target of Rp171 billion.(*)

Editor: Heru

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