PT Wijaya Karya Tbk (WIKA) has postponed its planned initial public offering (IPO) for its subsidiary, PT Wijaya Karya Realty. Whereas initially according to the plan, the IPO of PT Wijaya Karya Realty would be held this year.
“For the subsidiary’s IPO plan, after being discussed, Wika Rwalty’s IPO plan will be postponed,” said WIKA Finance Director Ade Wahyu in a virtual public expose press conference, Tuesday (25/8/2020).
The reason is that the company is still waiting for the continuation of the policy of the Ministry of State-Owned Enterprises (BUMN), which plans to form a sub-holding for BUMN Hospitality.
“It has been postponed until subholding, say that WIKA has got the task of being the parent of subholding hotels. So after the subholding of hotels is completed, the IPO of PT Wika Realty will be held again,” he continued.
It is possible that PT Wika Realty’s IPO will be held at the earliest next year or in 2023. “Maybe it can be in the next year or 2023 at the earliest after the hotel subholding process is completed,” he said.
As is well known, Wika Realty’s IPO plan has actually been discussed for a long time. Previously, during Tumiyana’s leadership, the target was Wika Realty IPO in the first quarter or second quarter of this year with a target of Rp 2-2.5 trillion of funds to be collected.
Prior to that, since April last year Wika Realty has also announced the IPO plan. The plan was postponed due to unfavorable market conditions. Wika Realty is a business unit of PT Wijaya Karya (Persero) Tbk. Wika Realty changed its status to a public company based on the Deed of Amendment to Articles of Association No. 11 dated December 7, 2004, but in accordance with the policy of the main shareholder (Wika) to conduct a public offering first, the initial public offering of Wika Realty shares to the public was postponed. In 2001, Wika Realty diversified its business from focusing on the Realty business as a developer to three business fields, namely Realty business development, property management and construction services.