Indonesia’s Semen Bosowa to launch IPO

Indonesia’s Semen Bosowa to launch IPO
Published: 05 October 2007

Cement maker PT Semen Bosowa in South Sulawesi said it will launch an initial public offering (IPO) early next year to raise Rp600 billion (US$66.5 million).

The fund from the share sale on the Jakarta Stock Exchange will be used to build a cement factory in Java, its Vice President Erwin Aksa said.

Erwin said the process toward IPO is in progress including repayment of a Rp500 billion debt to Bank Mandiri and Bank Negara Indonesia.

The company wants to settle the debt to the two state banks first before launching IPO, he said.

He said he was optimistic the debt could be fully settled before the end of this year.

He said the new factory will have an annual production capacity of 3.8 million tons, bringing its total capacity of 5.6 million tons when the new plant comes on line in 2011.