Financing Assessment to Support Business Expansion of PT. Patra Jasa

• Main Author: Febriyana/29116386, Lolita
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28635
• Institution: Institut Teknologi Bandung

Currently, Indonesia government intense to promote Indonesia tourism industry to domestic and international tourists. The government also builds several facilities and infrastructure to support the economy and tourism in the area. All these efforts give the positive impact for Indonesia economy and tourism industry. This is a good opportunity for the companies who are engaged in tourism and hospitality industry, such as PT. PatraJasa to expand its business. However, the company has limited expansion fund. There are several alternatives for the company to obtain additional capital such as issuing bonds, find additional private investors, conducting IPO (Initial Public Offering), etc. <br /> <br /> This research aimed to make the analysis for PT. PatraJasa to obtain the additional capital for expanding its hospitality business, especially analysis of conducting IPO, such as the eligibility of company to conduct IPO, the equity value of the company and the dilution effects of IPO to existing shareholders. The valuation analysis using free cash flow to firm (FCFF) model and P/E ratio model. <br /> <br /> This research found that the best alternatives for PT. PatraJasa to obtain additional source of funds is using the combination between debt and conducting IPO. PT. PatraJasa is eligible to conduct IPO and its equity value increases from IDR 9,914,807,000,000 to IDR 15,507,572,000,000 after IPO. The dilution effects of IPO to existing shareholders are reducing ownership percentage, reducing the voting control, reducing its earnings per share and increasing the company’s value without reinvesting additional fund for the company <br />