Jasa Marga Will Bring Its Subsidiary To The Floor On The Stock Exchange

JAKARTA - PT. Jasa Marga Tbk (LLC) stated that it is in the process of preparing its subsidiary, PT. Trans Jawa Toll Road to take the floor on the Indonesia Stock Exchange through an initial public offering (IPO).

"We have prepared the Trans Java Toll Road for the IPO and the process is waiting for the right time from a valuation perspective," said Jasa Marga Finance Director Donny Arsal in a webinar, Monday, March 8.

According to Donny, Jasa Marga actually has 14 toll roads in the Trans Java area that can be spun off into the Jasamarga Trans Java Toll sub-holding.

"The process is waiting for the right timing in terms of valuation. So we will spin off 14 concessions related to or related to Trans Java into the sub-holding," he said.

Donny explained that after that Jasa Marga will carry out optimization or value enhancers by making improvements in terms of efficiency and improving performance.

Thus, when it is sold or offered to the public, it can provide optimum results in terms of valuation.

"How much is the valuation? We are recalculating with the condition of COVID-19 and so on, we are preparing a valuation. The numbers should be quite significant considering there are 14 segments in Trans Java which Jasa Marga spins off into Trans Java sub-holding," said the Finance Director of Jasa Marga.

He also said that the possibility of the Jasamarga Transjawa Tollroad IPO is around 1-2 years, and hopefully, the COVID-19 pandemic will soon subside so that Jasa Marga's income can return to normal, and for valuation, it is also based on revenue and cash flow from sub-holding later. So Jasa Marga is waiting for the optimum timing.