[This story was first published at 11:31 a.m. on Tuesday, May 19, 2015, and this update adds the closing share at the end of the day, more comments from the company's president director and background]
Jakarta. Shares of PP Properti, the property development unit of state-owned builder Pembangunan Perumahan, climbed 12 percent on their trading debut in Jakarta on Tuesday.
Shares in the developer, the third company to go public so far this year, closed at Rp 208 on the Indonesia Stock Exchange (IDX) from the initial offering price at Rp 185 a piece. The shares reached its highest price at Rp 250.
PP Properti, listed on the Indonesia Stock Exchange (IDX) as PPRO, offered 4.9 billion shares, or 34.98 percent of its equity, in its initial public offering.
“The warm support and welcome that Indonesia’s capital market has given our trading debut is proof of its trust in the company,” said PP Property president director Galih Prahananto.
“This listing is our commitment to our partners and stakeholders.”
Bahana Securities, CIMB Securities Indonesia, CLSA Indonesia, Danareksa Sekuritas and Mandiri Sekuritas were the underwriters for the IPO.
PP Properti plans to use about 75 percent of the funds raised from the sale to support its expansion plans, 15 percent for its working capital, and 10 percent to service debt.
“We will continue to push development this year, even though many are claiming that the property industry is weakening, but PP Properti have many advantages that hopefully can bolster our performance,” said Galih.
The developer aims to book between Rp 300 billion ($22.8 million) and Rp 320 billion in net profit this year on the back of the company’s on-going projects, he said.
PP Properti is currently undertaking seven projects across Jakarta, West Java and Central Java, which includes the Rp 7 trillion Grand Kamala Lagoon mixed-use project in Bekasi and the Rp 1 trillion The Ayoma apartment in Serpong.