JAKARTA (TheInsiderStories) - PT Anugerah Berkah Madani Tbk (ABMA Land), an Indonesia’s leading property and real estate developer, is planning to raise up to Rp4.1 trillion (US$312.98 million) through initial public offering (IPO) in September this year. This will be the second largest IPO this year after PT Waskita Precast Concrete which raised up to Rp4.2 trillion.
The initial share price will be offered in the range of Rp 800 to Rp 1,250 a piece. The property company issues as much as 3.33 billion new shares to the public or represents a maximum of 25% of the issued and paid-up capital after the IPO.
“It’s a good chance all, timing fit perfectly, because Brexit and tax amnesty, so a lot of foreign money came in here,” Director of ABMA Musyanif explained.
He added, the majority of the IPO proceeds will be used for expansion and purchase of land in some areas of Greater Jakarta, Cilegon and Surabaya. The purchase will be conducted through the direct purchase to the third parties, in which the pricing of the lots to be acquired by PT Bintang Express Sarana, PT Lumbung Usaha Sejahtera, and PT Cakrawala Sinar Mulia are currently in the negotiating phase.
ABMA targets a net profit in 2016 as much as Rp 442 billion, grew 962.5 percent higher than net income in 2015 recorded only Rp 41.6 billion. While this year the revenues are expecting to be around Rp 1.2 trillion from last year Rp 359.1 billion.
A contractor of eight high-profile property developments spread across a number of Indonesia’s big cities such as Jakarta, Tangerang, Cilegon, Solo, Surabaya, and Makassar, ABMA Land owns and manages over 87,2 hectares of land banks. PT Saligading Bersama (SGB) as its majority shareholder of ABMA Land. (*)