WIKA is Tapping Into Overseas Market

Management of PT Wijaya Karya (WIKA IJ, Neutral, TP: IDR3,100) announced that the company will be taking overseas projects where each project is estimated to worth ~USD100-200m. Several projects mentioned are: toll road project in Algeria and Timor Leste, High rise project in Myanmar & Arab Saudi, and mall project in Kuching, Malaysia. The company is also planning to raise IDR1trn of equity from the market before end of year or early 2015, with one of the options of issuing Medium Term Notes (MTN).

This additional equity raising plan is outside of WIKA’s plan to IPO its property subsidiary. We view that the overseas projects mentioned are mostly still in the tender process except the high rise Pyay Tower, Myanmar project. Thus, we still have to wait for the formal announcement in order to get the details about each project and its contract value.