State-owned cement producer PT Semen Baturaja said it will launch an initial public offering (IPO) this year and sell 40 per cent of its shares to the public. The company, which is located in Palembang, South Sumatra, has recorded net profit in three successive years, one of the conditions for a company to be allowed to go public.
Company President Bakti Setiawan said management hopes to raise Rp500bn (US$50m) in funds from the share sales. The company posted Rp167bn in 2003, Rp4.2bn in 2004 and RpRp12.5bn last year. Bakti said part of the funds raised form the IPO will be used to repay debts and increase production capacity.