Jakarta. Puradelta Lestari — an industrial estate unit of property developer Sinarmas Land — is set to raise as much as Rp 3.8 trillion ($293 million) this month in its second run for an initial public offering, after shelving the plan in 2013.

The Jakarta-based company — a joint venture between Sinarmas Land and Japanese general trading firm Sojitz Corporation — is selling 10.8 billion shares, or 20 percent of its equity, at a price range of Rp 210 to Rp 350 each, according to its president director Teky Mailoa.

Puradelta will offer the shares on May 21-25 with Macquarie Capital Securities Indonesia, Sinarmas Sekuritas serving as underwriters. The shares are scheduled to be listed on the Indonesia Stock Exchange (IDX) on May 29.

“We’re optimistic that our shares will attract investors because there is an increasing demand for land in our industrial estate in Kota Deltamas, thanks to the growing wave of potential investors that’s coming to Indonesia,” Teky said, referring to the company’s township in Cikarang, West Java.

“Those investors will need plots to build and develop their plants, and the workers will, then, need residences, which will eventually increase demands for landed house and commercial area in Kota Deltamas.”

At least 60 percent of the proceeds from the IPO will be used to build infrastructure and for investment property, while 30 percent will go toward land acquisition. The remaining 10 percent will be used as working capital.

A pick-up in inflation and a weakening rupiah against the dollar compelled the central bank to raise interest rates, which pushed investors to shift to bonds and made equity investments less attractive.

GlobeAsia

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Source: The Jakarta Globe