Bina Puri unit makes powerful debut on IDX

PETALING JAYA: Bina Puri Holdings Bhd’s 80%-owned Indonesian power subsidiary, PT Megapower Makmur Tbk, made a strong debut on the Indonesia Stock Exchange (IDX), opening 70% above its offer price and becoming the top gainer on the exchange.

After trading started yesterday, its shares surged to 340 rupiah (11 sen), compared with its offer price of 200 rupiah (six sen).

As a result, the auto rejection system kicked in, blocking any further movements.

PT Megapower, which is involved in power distribution, power installation services and maintenance services, and the operation of electrical installations, offered up to 245.1 million new shares for subscription and/or purchase. Through its initial public offering exercise, the company raised 49 billion rupiah (RM15.8mil).

In a statement yesterday, PT Megapower president director Kang Jimmi said half of the funds would be utilised for debt settlements, while the remaining half would be used as working capital for the company’s operations.

Jimmi said the company was studying the possibility of constructing a mini-hydro plant in South Sulawesi with a capacity of about 10 MW.

PT Megapower’s strong showing, however, didn’t seem to do much for Bina Puri’s shares, which ended the day on the local bourse unchanged at 42 sen as at 5pm yesterday.

IDX approved the application for PT Megapower’s proposed listing via a letter dated June 22. Originally, PT Megapower was supposed to have been listed at the end of last August. However, the listing was delayed as certain accounting transactions had to be reconciled because of the difference in accounting practices between Indonesia and Malaysia. The Indonesian company has a 4.2 MW hydropower plant in Sulawesi that has been in operation since April last year.

It has eight diesel plants with a capacity of 28MW, which generates power for PT Perusahaan Listrik Negara, a state-owned corporation with a monopoly on electricity distribution.

Bina Puri’s power business contributes only about 1% to the com- pany’s revenue based on figures from the financial year ended Dec 31, 2016.

In the latest available quarter, the construction and property firm recorded a revenue of RM279.03mil for the quarter ended March 31, of which RM241.2mil came from the construction business and only RM5.6mil from the power business.

In January, StarBizWeek reported that Bina Puri had tendered for RM5bil worth of local jobs and hoped to secure at least RM1bil from that pool this year.

The tender book comprises road, infrastructure (LRT and MRT), building (housing, government buildings, affordable housing) and flood mitigation jobs.

Last year, the company obtained some RM800mil worth of jobs, mainly from the government.