Construction services company PT Nusa Raya Cipta1 allocates most of its initial public offering (IPO) fund for construction work capital.
The management of the company, led by Hadi Winarto Christianto, mentioned that about 75% of the proceeds from the IPO will be used to strengthen working capital construction. The use of working capital is 20% for Ciputra World II project financing, 10% for Parahyangan Residence project financing, and 45% for financing the Cikampek-Palimanan toll road project. “The remaining 25 percent will be used for capital expenditure, which is to purchase new heavy equipment to support our infrastructure business, particularly for the Cikampek-Palimanan toll road,” he said in a prospectus published on Thursday (5/30/2013).
Furthermore, the company mentioned a number of equipment such as excavator, dump truck, bulldozer, motor grader, sheep foot roller, vibratory roller, water tanker, concrete pump, concrete paver finsher and other auxiliary equipment. The Company did not mention the funding target and the initial price range in the prospectus. However, based on records Business, subsidiary Surya Semesta Internusa is eyeing the acquisition of fresh funds from IPO Rp300 billion.In the corporate action, the company has appointed PT Ciptadana Securities as underwriter.
Source : http://www.bisnis.com