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KAI Exploring IPO Options


PT Kereta Api Indonesia (KAI) is one of State-Owned Enterprises / Badan Usaha Milik Negara (BUMN) that has been in the capital market for 2 years. The enterprise first entered the capital market in November 2017 by releasing corporate bonds worth Rp 2 trillion and continued in the second round of corporate bonds offering in 2019 with the same amount of value. Together with the Ministry of State-Owned Enterprises (Kementerian BUMN), PT KAI is currently discussing the corporate’s five-year plan. On Monday (11/11), Finance Director of PT KAI, Didiek Hartantyo said that the company has been exploring optimal combinations of funding options, especially in the capital market. IPO may be a good option, considering the increasing number of domestic train passengers by 20% each year, which leads to a large number of funds needed to prepare for additional facilities and infrastructures.  For the past five years, PT KAI has noted the revenue growth by Compound Annual Growth Rate (CAGR) of 25.5% and average net profit growth by CAGR of 22.3%.  As for the last position in the first semester of 2019, the corporate’s total asset reached Rp 41.2 trillion with the increase of total assets by 5.84%, total liabilities by 7.1%, and total equity by 4.4%.  Equity-Fixed Income Trading Director of Bahana Sekuritas, Ermawati A. Enran, said that this is the right moment for PT KAI to launch in the stock market, considering its need of a large capital expenditure as well as the stable prediction of the global and local macroeconomic situation for the upcoming year. Sources:

CNBC Indonesia Tempo.co Bisnis.com

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