Duta Anggada Realty to split its shares
Duta Anggada Realty to split its shares
JAKARTA (JP): Shareholders of the publicly listed PT Duta
Anggada Realty have approved the company's proposal to split the
company's shares by reducing the stock's nominal value to Rp 500
from Rp 1,000.
Duta Anggada's President Hartadi Angkosubroto said Thursday
that the split would double the number of shares to two billion.
"The split would improve the shares' liquidity," Hartadi said
following the company's shareholders meeting.
The company's stock price closed at Rp 2,100 on the Jakarta
Stock Exchange (JSX) yesterday. The split will dilute the price
by 50 percent.
The shareholders also approved the company's proposal to raise
its authorized capital to Rp 1 trillion from Rp 500 billion.
He said the share split and the change in the authorized
capital should be approved by the Capital Market Supervisory
Board and the Ministry of Justice.
"We hope it will be approved before next month's general
election," he said.
Duta Anggada, a listed property arm of the Gunung Sewu Group,
owns several office buildings, apartments and shopping centers.
Hartadi said more than 50 percent of the company's revenues
came from the operation of offices, 25 percent from shopping
centers, 20 percent from apartments, and the rest from retail and
hotels.
In 1995, the company booked a net profit of Rp 27.14 billion,
down from Rp 30.46 billion in 1994. The net profit for 1996 is
estimated to reach Rp 43 billion.
Under construction
The company is developing two shopping centers in Surakarta,
Central Java, and Lampung, Sumatra, which are due for completion
in about three years, he said.
The Mal Solo project, occupying 50,000 square meters of land,
would cost around US$60 million in investment, while the 60,000
square-meter Mal Way Halim project in Lampung would cost about
$75 million, he said.
Hartadi said both Surakarta and Lampung were potential areas
for development because both cities are yet to have large plazas.
He said the company would gain loans to finance the two
projects.
Several institutions have already shown interest in financing
the projects, he said, but declined to name them.
He said his company also planned to issue floating rate notes
to fund the projects.
The company is also currently constructing a complex
comprising a hotel, shopping center, service apartments, and
office space on more than 100,000 square meters in Jakarta.
The project, called Plaza Galeria, would cost Rp 250 billion
in investment, he said.
Hartadi said Duta Anggada owned a 15 hectare plot in the
city's most commercial district, the Golden Triangle area. About
six hectares of the land has not been built. (das)