Indonesian pipe producer plans IPO

Indonesia-based pipe manufacturer, Wahana Vinyl Nusantara, plans to conduct an initial public offering (IPO) on the Indonesia Stock Exchange in the first half of 2018, according to Stephen Widjaja, President Director of the company. Wahana Vinyl Nusantara will offer a maximum stake of 20% (of the company's total share equity) to the public, according to a report by Indonesia Investments. 

 

Proceeds of the IPO will go to the proposed production capacity expansion of Wahana Vinyl Nusantara. The company is the largest pipe manufacturer in Indonesia, accounting for about half of the market. It's known for its Rucika brand. Production capacity of its plant is estimated at 200,000 tonnes of pipes yearly.  

 

Wahana Vinyl Nusantara eyes more export markets and is seeking partnerships with foreign companies. It also wants to export its pipes to Asian markets. It currently operates manufacturing plants in Cibitung, Karawang, Lemah Abang and Mojokerto (all on the island of Java). It further owns three distribution centers in Tangerang (West Java), Medan (North Sumatra) and Mojokerto (East Java).