#TITLE_ALTERNATIVE#
In order to develop a company needs an additional funding. Usually, funding derived from two sources which is internal and external sources. There are limitation in using internal source funding such as the lack of the fund itself, for this reason external source of fund could be the solution for fu...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/19424 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | In order to develop a company needs an additional funding. Usually, funding derived from two sources which is internal and external sources. There are limitation in using internal source funding such as the lack of the fund itself, for this reason external source of fund could be the solution for funding in the company. PLN Batam as the provider of electricity for Batam Island facing several problems such as 95% of the electricity were produced by the Independent Power Producer (IPP), higher demand of electricity and network services. PLN Batam have to used two type of fuel in production activity which is diesel and gas. Shortage in gas would leads the company have to use diesel as the fuel which had higher production cost. <br />
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In order to solve those problems, PLN Batam would like to applied fuel mix strategy between coals and combine cycle power plant to prevent the shortage of the gas supply. This strategy requires numerous of financing which is around Rp 3.37 trillion until 2016. Internal source of funding could not obtain to fund those investment which leads the company to consider an external source financing such as debt and/or equity. <br />
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Debt to external parties is not allowed since PLN Batam status which is restricted subsidiary, related to the Global Bond that already issued by PLN Persero as the holding company. Strategic sales could be the alternative, but since PLN Batam have no investors or alternative partners whose interested to the joint have leads PLN Batam to explore deeply to earn public capital for financing through IPO (Initial Public Offering) as the best alternative to earn investment capital. <br />
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Offering stock price could be crucial to success of IPO financing strategy. Offering stock prices were analyzed by two methods, DCF method (Discounted Cash Flow) and Relative valuation method. DCF methods used scenario based on capital structure and growth projection. While Relative Valuations methods compared to the similar type of company which had been issued their share already. Based on those methods would develop the acceptable sahre price, which is between Rp 1.354 – Rp2.914. |
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