Puradelta hopes to raise over Rp 2t from IPO

JAKARTA. Property developer PT Puradelta Lestari, which is known for its industrial township Kota Deltamas, aims to raise Rp 2.7 trillion (US$270 million) through its initial public offering (IPO) to finance its development.

Puradelta announced on Wednesday that it would offload 10.84 billion new shares, which will be equal to 20 percent of its enlarged capital, in the IPO.

The share price has been set between Rp 205 to Rp 255, with the possibility of returning up to Rp 2.7 trillion.

Puradelta has appointed PT Macquarie Capital Securities Indonesia and PT Sinarmas Sekuritas as underwriters for the offering.

The company will start offering on Aug. 16 and plans to list its shares on the Indonesia Stock Exchange (IDX) on Aug. 26.

Puradelta will use 60 percent of the funds raised from the offering to finance the development of infrastructure and other supporting facilities for Kota Deltamas. Twenty percent from the IPO will be used as working capital and the remaining 20 percent will finance land acquisition near Kota Deltamas in Bekasi, West Java.

Puradelta currently has 2,989 hectares (ha) land in total, of which 1,406 ha are allocated to industrial estate, 826 ha for residential and 757 ha for commercial development.

Puradelta director Hermawan Wijaya said the company expected to acquire around 200 ha near its existing land bank in the next two years.

“We will use the funds from IPO and will look for funding from other sources if necessary,” Hermawan said.

Puradelta is targeting to sell a combined 100 ha of industrial estate, residential and commercial land this year. According to Hermawan, the company sold around 50 ha in the first half of the year.

One of Puradelta’s clients was Japanese retailer AEON Group, which bought 20 ha to build a shopping mall.

Among Puradelta’s tenants on Kota Deltamas, are muffler manufacturer Futaba Industrial Co. Ltd., window regulator manufacturer Shiroki Corporation, plastic component manufacturer Daiho, Suzuki and Astra Otoparts.

Prior to the offering, Puradelta was 45.97 percent owned by AFP International Capital Pte. Ltd., 2.74 percent owned by Jermina Ltd., and 1.29 percent owned by PT Sumber Arusmulia.

The three companies are currently under conglomerate Sinarmas Land. (Raras Cahyafitri/The Jakarta Post)