PT Royal Sentul expects to raise $83.3m from IPO
PT Royal Sentul expects to raise $83.3m from IPO
JAKARTA (JP): PT Royal Sentul Highlands, an urban development
company, expects to raise Rp 200 billion (US$83.33 million) from
its initial public offering (IPO) in July this year.
James Riyadi, one of the company's shareholders, said here
yesterday that Royal Sentul would sell 400 million new shares
during the IPO or around 27.97 percent of its capital.
He said the shares would be sold at par value of Rp 500.
"The price is low because we want to make the shares
attractive to investors," said James, who is also the vice
chairman of the Lippo Group.
Most publicly listed companies sold their shares above their
nominal or par value.
James said that 65 percent of the proceeds would be used to
improve the infrastructure facilities, and 25 percent to increase
the firm's capital structure.
"The remaining 10 percent will be used for land clearance," he
said.
PT Trimegah Securities will be the lead underwriter for the
IPO.
Director of Trimegah Securities Baktiar Rakhman said the
offering period will be from July 7 to July 11 and the listing on
the Jakarta and Surabaya stock exchange would be made on July 23.
James said Royal Sentul Highlands is a consortium of several
firms including PT Asriland of Bambang Trihatmojo, Tommy Winata
of Artha Graha Group and Sugianto Kusuma, James Riady of Lippo
Group and PT Indocement.
"Bambang Trihatmojo's Asriland is the majority shareholder in
the firm," he said, not mentioning the composition of
consortium's share ownership.
He said Royal Sentul, which had acquired 2,500 hectares of
land in Sentul, near Bogor, West Java for its urban development,
was not a property developer because the firm's main development
was on infrastructure and public utilities, not housing.
"Royal Sentul is an urban development business," he said.
He said the public utilities to be built in the area include
senior high schools, a golf course such as the Satelindo Golf
Club, Japan Club, Islamic Center and a Pelita Harapan senior high
School.
He said the IPO was expected to increase the consortium's
total equity to Rp 700 billion from Rp 450 billion at present.
James said the consortium had total assets of more than Rp 2
trillion as of June 1997. (09)