Jaya Real Property to issue 35 million new shares
Jaya Real Property to issue 35 million new shares
JAKARTA (JP): PT Jaya Real Property (JRP), a subsidiary of PT
Pembangunan Jaya, a major property developer, will issue 35
million new shares in May to finance land acquisition and the
development of three satellite city projects.
The company's president, Ciputra, said that half of the funds
to be raised from the selling of 14.9 percent of the company's
enlarged shares will be allocated to finance land acquisition and
the development the Bintaro Jaya Satellite City, while the other
half will be used to finance the development of two other
satellite city projects.
He said that company possesses five land acquisition permits
for 1,721 hectares, of which 821.5 hectares have been acquired.
Before the share issue, JRP is 100 percent owned by
Pembangunan Jaya and after the share issue Pembangunan Jaya will
own 85.1 percent and the public 14.9 percent.
Pembangunan Jaya, founded in 1961 by the Jakarta municipal
administration, is 40 percent owned by the city administration,
with 60 percent owned by businessmen.
According to Ciputra, the initial public offering is scheduled
on May 9 to 11 and the company will hold road shows in Singapore,
Hong Kong, Bahrain, London, New York and Boston.
Wijaya, the executive of PT W.I. Carr Indonesia, the company's
managing underwriter, said that at least 26 underwriters will
participate in the issuance of JRP's new shares.
Capital
The company, established in 1979 as PT Bintaro Jaya, increased
its authorized capital in 1992 from Rp 10.9 billion (US$5.08
million) to Rp 150 billion ($69.9 million) and changed its name
to PT Jaya Real Property as the company planned to expand its
business not only in Bintaro but also to build two other
satellite cities. Both will be approximately the same size as
Bintaro Jaya.
Ciputra and Wijaya refused to mention the location of the two
projects to avoid land speculation.
The company is also the owner of four shopping centers in
Jakarta, such as the Slipi Jaya Plaza, Plaza Bintaro Jaya and
Block IV and V of the Senen Shopping Center.
Tanto Kurniawan, the company's finance director, said the
company's revenue increased from Rp 69.9 billion in 1991 to Rp
105.3 billion in 1993 and the company's after tax profit rose
from Rp 9.6 billion to Rp 43.8 billion.
The company's assets also increased from Rp 203 billion to Rp
360 billion.(03)