Jasa Armada IPO to raise $69m to buy vessels

Shipping unit of Indonesian port operator Pelindo II, Jasa Armada Indonesia, is expecting to raise about IDR924.3bn ($68.5m) in fresh funds after setting its initial public offering (IPO) price at between IDR325 to IDR530, local reports said.

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.

Posted 30 November 2017

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Vincent Wee

Asia Editor, Seatrade Maritime News