Sinarmas’ Puradelta aims to pocket up to Rp 3.8t from IPO

Integrated property firm Puradelta Lestari — part of Singapore-listed Sinarmas Land — looks to raise up to Rp 3.8 trillion (US$292 million) in its initial public offering (IPO) this month to support its business expansion.

The IPO, according to Puradelta president director Teky Mailoa, will offer 10.84 billion shares, equal to 20 percent of the company’s enlarged capital.

The price for the IPO shares is set at between Rp 210 and Rp 350 apiece, meaning that the company could pocket Rp 2.28 trillion to Rp 3.79 trillion from the offering.

Teky said the company planned to use 60 percent of the IPO funds to finance the construction of infrastructure and property in its flagship project Kota Deltamas in Bekasi, West Java, while about 30 percent of the funds would be used to acquire a new plot of land in the area.

The remaining 10 percent, he said, will be used as working capital.

“We are planning to acquire 500 hectares of land in the next three years, starting with about 130 hectares this year. We are also planning to start developing a Japanese-style residential cluster mid-next year, which could cost us around Rp 1 trillion in investment, part of which will be funded by the IPO funds,” Teky said, explaining the company’s near future expansion.

Kota Deltamas comprises about 3,000 hectares of land, of which about 1,800 hectares have been developed and sold. About 47 percent of the land has been earmarked for industrial property, while residential and commercial properties occupy 28 percent and 25 percent, respectively.

Industrial property is the company’s main sales generator, accounting for 97 percent of the company’s Rp 1.6 trillion marketing sales last year.

Most of the company’s industrial estate customers are Japanese automotive manufacturers, with anchor buyers including Mitsubishi Motors and Hitachi Automotive.

Puradelta saw its revenue decline by 15.85 percent year-on-year to Rp 1.54 trillion last year, while its net profits rose 2.4 percent to Rp 964.11 billion.

Puradelta will be third firm under Sinarmas Land — a part of tycoon Eka Tjipta Widjaja’s business empire Sinar Mas Group — to list on the bourse, after the country’s largest township developer Bumi Serpong Damai (BSD) and retail property firm Duta Pertiwi.

The company has appointed Macquarie Capital Securities Indonesia, affiliated-broker Sinarmas Sekuritas and CLSA Indonesia as underwriters for the IPO. The book-building period is slated to last from May 4 to 14, while the offering date is set for May 21-25, before the shares are allotted on May 28 and listed on the Indonesia Stock Exchange (IDX) on May 29.

Meanwhile, IT-turned-gas firm Mitra Energi Persada relisted 11.57 percent of its shares — each priced Rp 395 during opening trade — on the bourse on Monday, after being delisted in February 2007 after the company failed to provide a business plan requested by the exchange authority and because of prolonged poor performance.

The company was established in 1981 as an advertising company, before changing its core business to IT and later to investment, before shifting to energy.

Mitra’s shares — listed under the code KOPI — closed at Rp 450 apiece, or 49 percent higher than the opening price.

Mitra Energi president director Ivo Wongkaren said the company wanted to boost the public’s stake in the company through a rights issue in the near future to support its expansion and aimed at doubling its revenue and net profits this year from Rp 147 billion and Rp 15 billion last year. (agn)

Anggi M. Lubis, The Jakarta Post, Jakarta


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