MEASURING THE PROSPECTS OF SOE’s IPO 2023
The differentiation that Palm Co has is as a state company that can synergize with many other BUMNs so that the potential for value creation is relatively large. For example, research collaboration, product downstreaming and supply chain cooperation (value chain) with other SOEs.
Another IPO candidate is Pupuk Kaltim (PKT). This company is the largest producer of urea and NPK fertilizer in Asia. The company is a subsidiary of PT Pupuk Indonesia (Persero).
From the company’s official website, currently Pupuk Kaltim has 13 factories including five Ammonia plants with a capacity of 2.74 million tons per year, five Urea plants with a capacity of 3.43 million tons per year and three NPK plants with a capacity of 300,000 tons per year.
What are the prospects for the PKT IPO? Because this company is one of the largest subsidiaries in terms of production facilities, has a reliable source of gas supply, has internal port facilities (for export purposes), and is engaged not only in fertilizer production but also its derivative products which have high selling value. The fertilizer that will be produced is also starting to focus on the production of NPK which has a high selling value. This all requires a large investment and IPO is one alternative. PKT’s prospects are quite good because holding fertilizer will also free PKT from the PSO assignment, so that it can focus on increasing competitiveness.
Will the BUMN go public plan be successful? In 2023 we are facing an economic situation moving towards a recession. Global demand will weaken so that it will certainly have an impact on export-oriented SOEs. This will certainly have an impact on the IPO prospects of several BUMNs which will experience a steep road. This means that investors may not be too interested in the capital market as an investment destination in 2023. So additional sweeteners are needed to ensure that this BUMN IPO will be attractive to investors.
The success or failure of this state company’s IPO also depends on the company’s performance and prospects. As long as these two things are good enough, the IPO should attract investors. Hopefully the 2023 BUMN IPO will be successful.
