Indonesia Stock Market News: Solid Trading Debut PP Properti on IDX
Pembangunan Perumahan Properti (PP Properti), a property developer and unit of state-controlled Pembangunan Perumahan (PP), made a successful listing on the Indonesia Stock Exchange (IDX) today (19/05). Shares of PP Properti soared 35 percent at its trading debut. After Bank Yudha Bhakti (BBYD) and Mitra Keluarga Karyasehat (MIKA), PP Properti (PPRO) is the third Indonesian company to have conducted an initial public offering (IPO) in the Indonesia Stock Exchange (Mitra Energi Persada had relisted earlier in May 2015).
PP Properti offered 4.91 billion shares, or 34.98 percent of the company’s enlarged equity, at a price of IDR 185 per share, hence targeting to raise IDR 908.8 billion (USD $70 million) from the IPO.
The company stated that it will use 75 percent of IPO proceeds for further business expansion (this includes the expansion of its 55-hectare land bank on the islands of Java and Kalimantan). About 15 percent is to be used for working capital (which includes the development of existing residential and commercial projects in Bekasi, Tangerang, Surabaya, Bogor and Semarang). The remaining ten percent is to be used repay debts to parent company PP.
President Director of PP Properti Galih Prahananto said that the high demand for the company’s shares reflects investors’ confidence in PP Properti.
Further Reading:
• Relisting Mitra Energi Persada on the Indonesia Stock Exchange
• IPO Mitra Keluarga Karyasehat on the Indonesia Stock Exchange
• Bank Yudha Bhakti Listed on the Indonesia Stock Exchange
• IPO Pembangunan Perumahan Properti on the Indonesia Stock Exchange