Cipta Kridatama plans IPO after 2015

PT Cipta Kridatama, a coal mining service that is part of a diversified conglomerate Tiara Marga Trakindo, plans to undertake an initial public offering in the next two years.

?The IPO is aimed at securing fresh funds, apart from improving transparency and good corporate governance,? Cipta Kridatama Chief Executive Irfan Setiaputra said as quoted by The Jakarta Globe on Monday.

He added that the IPO was unlikely to happen in 2014 and 2015 as the company was still focusing on enlarging its business.

?But when we reach a certain point, we will head there [going public],? he said, adding that he expected the company to be ready to go public after 2015.

This year, Irfan said the company would focus on diversifying its sources of revenue while strengthening its core business in providing pit-to-port services to major mining companies in Indonesia.

Last week Cipta Kridatama ? which was incorporated in April 1997 and has been one of the biggest coal mining service providers in Indonesia ? announced its intention to venture into the construction business.

Irfan said Cipta Kridatama aims to book revenue of up to $50 million in the construction sector in 2015.

The company began its construction business last year with the building of a 30-kilometer road from a mining area to a port in East Kalimantan. Cipta Kridatama is eying more projects, including construction of a port, a toll road, and development of an oil and gas field. (*)