Steadfast Looking for Rp100bln Capital Injection, to Finance New Builds

Public listed national shipbuilding company PT Steadfast Marine is looking for capital injection of Rp100 billion ($7.1 million) to finance its new builds if it can win some biddings for new ship building this year.

The Steadfast top rank executive said as quoted by that this company has been participated in the bidding of new builds from three government bodies and business entity, including from Indonesia Army.

To finance those new builds, Steadfast was planning to conduct rights issue that was expected to be realized in the second quarter this year (Q22020).

President Commissioner Eddy Kurniawan Logam said the corporate was still evaluating the market condition for pricing decision. Steadfast, Eddy said, had discussed it with standby buyers.

He expects the right issue can collect the some more than Rp100 billion to finance the new building.

“This is to strengthen our financial capability. So, whenever we win the biddings, we have enough cash to finance those works,” he said.

Eddy expects that the new works will increase its shipyard utility to 60% this year, from only 30% last year (2019).

Eddy, who is also Chairman of Indonesia Shipbuilders’ Association (Ipperindo), notes that the market of shipbuilding industry will be more promising this year, compared to last year, as some state-owned companies plan to order new fleets and some have opened bidding.

But, Eddy noted that the national shipbuilding industry will face a more challenging future since the price of raw material will be more fluctuating due to global economy condition.

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