JAKARTA - PT Krakatau Steel (Persero) Tbk (KRAS) is open to the opportunity to debut its subsidiary in Indonesia Stock Exchange (IDX).

President Director of Krakatau Steel, Muhammad Akbar, in a virtual press conference, last Tuesday (31/12), confirmed that the company is currently reviewing the potential of its subsidiary conducting an IPO to generate added value for Krakatau Steel and its business group.

“The IPO of the subsidiary is also a part of the company’s strategy to settle some debts,” Akbar said.

Tardi, Director of Finance and Risk Management of Krakatau Steel, mentioned that one of its focuses is settling the payment of Tranche B worth USD 234 million by funding non-productive asset and divesting subsidiary.

In addition, KRAS is currently concluding debt restructuring process through the approval from 10 creditors. Most of creditors have agreed upon the submitted proposal, while the remainder is expected to be settled by Q1 2025.

The management of Krakatau Steel is optimistic that these measures will boost financial condition and company prospect in the future.

According to IDNFinancials data, KRAS had announced the IPO plan for PT Krakatau Sarana Infrastruktur (KSI) in 2023. However, the management outlined that KSI’s IPO plan is meant as business expansion strategy. (DK/ZH)