Increase Performance, Krakatau Steel Opens Opportunities For IPOs For Subsidiaries

Aluminum (photo: antara)

JAKARTA - PT Krakatau Steel (Persero) Tbk opens the opportunity for its subsidiary to conduct an Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX). The goal is to improve the company's performance.

This was conveyed by the President Director of Krakatau Steel Muhamad Akbar in a virtual public expose of Krakatau Steel, Monday, December 30.

"We will explore efforts made by Krakatau Steel Group to improve performance on a consolidated basis, so that we will explore the potential of IPOs in subsidiaries, we will review them to provide added value for the performance of Krakatau Steel and its subsidiaries," he said.

Meanwhile, Director of Finance and Risk Management Krakatau Steel Tardi explained that the opportunity for the IPO is open and can also be done in order to settle the company's debt.

Furthermore, Tardi said one of them was tranche B's debt worth 234 million US dollars which is planned to be settled through fundraising non-productive assets and divesting subsidiaries. Through this divestment, the opportunity for subsidiaries to conduct IPOs is open.

"In the divestment of the subsidiary, it is also possible for us to try to explore whether the mechanism is through an IPO or through other financial strategic methods," said Tardi.

On the other hand, Tardi also mentioned debt restructuring. He said the company was in the process of obtaining creditors' approval regarding a new scheme to settle debt.

Furthermore, Tardi also targets the company's debt restructuring to be completed in the first quarter of 2025.

"Indeed, there are some creditors who have not agreed. But we have confidence in a clearer work plan, with better prospects, we hope that debt restructuring we will be able to conclude in the first quarter of 2025," he said.