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Nowadays, Engineering Procurement and Construction (EPC) industry has enormous potential. This situation is reflected in government's plan to increase development in area of infrastructure and energy. Lately, PT XYZ has a very rapid growth since it has lot of projects that are currently in prog...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/8817 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Nowadays, Engineering Procurement and Construction (EPC) industry has enormous potential. This situation is reflected in government's plan to increase development in area of infrastructure and energy. Lately, PT XYZ has a very rapid growth since it has lot of projects that are currently in progress and going to be done. PT XYZ is a government owned company which has business in EPC sector. Projects' value that are going to be done is US$ 567.5 million. These projects force PT XYZ to provide more fund as the initial outlay for those projects. <br />
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In order to maximize the opportunity available, PT XYZ has to increase its funding source so it can fund its projects' initial outlay. Finding out the right funding source is by using Basic Business Profitability calculation. BBP calculation shows that the BBP value is lower than the loan interest rate. It indicates that the return rate provided by the company for the shareholders is lower than the credit interest that has to be paid to creditor. In other words, it means that the company could not afford to pay the interest. In this condition, the company better funds its investment in projects by using equity. Equity funding used by PT XYZ is Initial Public Offering. Initial Public Offering (IPO) is a process of shares offering to public in open market for the first time. <br />
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This final project is focused in company valuing and analyzing price per share also the amount of shares that has to be issued in order to generate fund that can be used to invest in the projects' initial outlay. The method used is Free Cash Flow Valuation Model. The calculation shows that the firm value is Rp. 371.336.160.605 and the company needs investment total of Rp. 778.330.413.279, therefore the company has to issue 622.664.331 shares with price per share is Rp 1.250 <br />
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