JAKARTA - PT Krakatau Steel (Persero) Tbk (KRAS) plans to release part of its subsidiaries through an initial public offering (IPO) scheme next year. The sale of shares of three subsidiary companies gradually within the next 3 years.
"One is ready in next year, while the other two are still preparing," said President Director of Krakatau Steel Mas Wigrantoro Roes Setiyadi.
The three subsidiaries of Krakatau Steel are PT Krakatau Bandar Samudera, PT Krakatau Daya Listrik, and PT Krakatau Industrial Estate Cilegon. The company has received the government's blessing for the IPO plan.
The purpose of the subsidiary's go public is to increase the contribution of consolidated revenues. The subsidiary's revenue contribution is only 15% of Krakatau Steel's consolidated revenue. The company targets all subsidiaries to contribute 50% of consolidated revenue.
KS has eleven subsidiaries located in various business sectors such as property sector, water supply, port, hospital, and steel trading. However, only two subsidiaries which also produce steel products are PT Krakatau Wajatama and PT KHI Pipe Industries. (HR)