Through the IPO, the company will release 1.74bn shares or equivalent to 30% of its total paid-up capital.
Jasa Armada president director Dawam Atmosudiro said the firm would use 90% of the IPO proceeds for capital expenditure requirements and the remaining 10% as working capital. The company plans to purchase 15 to 16 new vessels over the next two years at an estimated cost of IDR60m to ISR65m per vessel.
“The IPO proceeds will be used for capital expenditure for expansion purposes,” Dawam said.
Jasa Armada plans to place orders for four ships next week, he added, while also noting that it plans to expand to ship-to-ship operations for oil and gas in Sulawesi and eastern Sumatra next year.