Developer of property offers new shares

JAKARTA (JP): PT Duta Pertiwi, a diversified property developer affiliated with the Sinar Mas Group, will offer 25 million new shares, or around 11 percent of its enlarged total of common stocks, in October.

Gunawan Yusuf, president of PT Makindo Securities which is acting as a lead underwriter of the share issuance, said yesterday that the shares, which carry a nominal value of Rp 1,000 (46 U.S. cents) each, will likely be offered at more than Rp 3,000 ($1.39) each.

He said that the company, which will be listed on the Jakarta and Surabaya Stock Exchanges, plans to use 51.3 percent of the proceeds from the public offering to strengthen the company's working capital for the development of the Cempakaputih Mas housing project.

He said the remainder will go toward increasing equity participation in the company's four subsidiaries.

The company controls six wholly owned subsidiaries operating in the commercial, residential and hotel sectors.

The six firms are PT Sinarwisata Lestari, PT Pangeran Plaza Utama, PT Saranapapan Ekasejati, PT Perwita Margasakti, PT Sinarwisata Permai and PT Mekanusa Cipta.

Duta Pertiwi also owns 60 percent of PT Sinarwijaya Ekapratista and 80 percent of PT Royal Oriental Ltd., which both operate as developers.

Projects

Up to the end of March, the company and its subsidiaries had completed several projects, including an International Trade Center at Mangga Dua in North Jakarta, Mangga Dua Court Apartments, also in North Jakarta, and a four-star Dusit Inn Hotel in Balikpapan, East Kalimantan.

Muktar Wijaya, Duta Pertiwi's vice president, said that his company also plans to construct office buildings and residential houses to meet middle class demand.

Last March, the company issued convertible bonds valued at $35 million. The five-year term bonds can be converted into common shares at a conversion rate of Rp 1,500 per share eight months after their listing on the stock exchanges.

The company's sales revenues increased by 8.64 percent to Rp 167.48 billion last year. Its sales revenues reached Rp 74.48 billion during the first three months of this year.

The company, whose after-tax profit rose to Rp 18.32 billion in 1993 from Rp 10.73 billion in 1992, gained a profit of Rp 37 billion during the first six months of this year.

Muktar said the company expects to gain a profit of Rp 74 billion this year.

The company's assets totaled Rp 716.3 billion as of March 1994. (05)