IPO aspirant investment holding company Gallant Venture (GV) yesterday told a press conference that it expects much of its future growth to come from utilities, industrial parks and property.

GV expects to be listed around June 6. Before then, major shareholder Parallax Venture Partners XXX will place out 280 million existing shares at 50 cents apiece. There will be a further transfer by another shareholder, PT Herwido Rintis, which will involve 25.05 million shares.

GV, which says it has a low level of debt, has not yet announced a policy on dividends. The company's major lines of businesses are in utilities, industrial parks, resort operations and property development, largely in Indonesia. As of June 2005, utilities generated most of GV's revenue, at 59 per cent.

The company is the sole provider of electricity, water and waste management for Bintan Resorts. Industrial parks was the second largest contributor to revenues, at 32.9 per cent, while resort operations brought in 8.1 per cent of total revenue. Property development is listed as not bringing in any money at the moment.

Despite the zero profit contribution from property development, Eugene Cho Park, executive director and chief executive officer of GV, believes that it could provide the company with significant growth potential. This is because the company has an 18,400-ha landbank, which is expected to sell at more than $3 per square metre.

Other strengths of GV include its access to an abundant workforce given the labour cost advantage afforded by Indonesia relative to Singapore, and the strategic proximity of Batam and Bintan to Singapore.

Despite the company's excellent growth prospects, however, there are certain risk factors involved. These include economic and political factors in Indonesia that could bring about fluctuations in the rupiah, as well as the lack of certainty of commercial success for GV's future plans.