Medco Power targets 2016 IPO

By Godang Sitompul

PT Medco Power Indonesia plans to go public in 2016 through an initial public offering (IPO) when the company?s valuation is estimated to reach US$500 million.

According to President Director Fazil Erwin Alfitri the IPO plan is the company?s next big program following the entrance of PT Saratoga Power, a unit of one the nation?s top venture capitalists Saratoga Capital, into the company in 2011 as a majority shareholder.

?We are still going after certain fundamental targets (before going public). In principle, we want the IPO to be carried out after the company reaches the $500 million mark in value. Most likely we could achieve that by 2016,? he said in Bali on the sidelines of the 19th Conference of the Electric Power Supply Industry (CEPSI).

Saratoga bought a 51 percent stake in Medco Power in December 2011 for US$112 million. At present, the company is valued at around $300 million, according to Fazil.

Editing by Dadan Wijaksana