Jasa Armada Indonesia (JAI), a subsidiary of state-owned port operator Pelindo II, plans to conduct an initial public offering (IPO) in December 2018 for supporting its business expansion. In order to boost investor confidence in purchasing JAI’s shares, the firm received 21 ships from Pelindo II worth $25.74 million in a process known as inbreng, in which assets of one company are transferred to another and are treated as capital injection. The 21 ships include 10 tugboats, nine pilot boats and two mooring boats, bringing the total number of ships with JAI to 23.
The firm plans to release a maximum of 30 per cent of its shares to the public with the target of raising Rp 2 trillion. JAI has chosen three companies as its underwriters – Mandiri Sekuritas, Danareksa Sekuritas and RHB Sekuritas. JAI plans to buy 15 new ships within two years by using the proceeds from the IPO. These ships will be deployed to serve pilotage and offer tug boat services in its area of operation. At present, JAI operates in 12 ports managed by Pelindo II.