Indonesia's top three state-owned construction companies are seeking to make up to $1.2 billion this year by offloading shares, a strategy that will show the extent of investor appetite for exposure to the country's infrastructure sector. The contractors have secured a portion of the revised budget, which shared 44 trillion rupiah to 20 state-owned enterprises. Private investors are thought to make up more than 70% of the target. Waskita Karya, which received an injection of capital from the government in 2015, is expected to generate up to 5.27 trillion rupiah through an initial public offering of its concrete precast arm, Waskita Beton Precast. In total, 10.54 billion shares of WBP, 40% of the entirety, will be offloaded for 400-500 rupiah per share. Meanwhile, Wijaya Karya and Pembangunan Perumahan want to generate 6.15 trillion rupiah and 4.4 trillion rupiah, respectively, through a rights issue. The government is predicted to exercise its rights to buy new shares. This week, shareholders in both companies approved the issues.
