Indonesian state-owned shipping company Djakarta Lloyd is planning to conduct an initial public offering on the Indonesia Stock Exchange by 2022, Indonesian local media claim.
According to Suyoto, managing director of Djakarta Lloyd, the company is currently in the preparation stage for the IPO.
The company will issue up to 30% of its shares to the public and the proceeds from the IPO will be used for fleet expansion and working capital.
Djakarta Lloyd is also looking to expand into the LNG carrier market as it is currently joining a tender for LNG transportation held by PT Perusahaan Gas Negara.
Suyoto admitted that the IPO will not be an easy task as the company still has quite a heavy debt burden.
Djakarta Lloyd was on the verge of bankruptcy about five years ago and the company has since been pushing forward a business transformation from boxship operator to bulk operator.
“I’m sure that in the next two to three years, we can submit it to the general meeting of shareholders to obtain IPO approval while we slowly improve our financial condition, especially in our balance sheet,” Suyoto said.
The company currently operates two supramax bulkers with another two small tankers under construction.