Bumi Serpong plans to offer up to 10% shares in rights issue
(The Insider Stories) - Indonesian property developer PT Bumi Serpong Damai (IDX:BSDE) plans to offer up to 10% of its shares in a rights issuance to finance business expansion. In the next three years BSDE plans to invest around IDR9 trillion ($900 million) with the investment to be financed from internally generated cash (now IDR3.7 trillion), issuance of up to IDR2 trillion in bonds, and rights issuance.
Bumi Serpong director Hermawan Wijaya said the company plans to develop an industrial estate in Surabaya, East Java, and landed residential and other property services in Java Island and East Kalimantan province.
He said BSDE recently acquired 100 hectares in Samarinda, East Kalimantan and 400 hectares in Surabaya. In total Bumi Serpong Damai has 5,000 hectares of land.
BSDE has a joint venture (JV) company with Hong Kong Land Holdings (HKLD), AEON Malls and Kompas Group and in the future may seek more JVs with international property developers to boost business in Indonesia, Wijaya said.
This year, BSDE expects revenue of IDR5 trillion, rising 85.19% from last year’s IDR2.7 trillion from their operating and land sale. The company plans to sell 150 hectares and develop another 100 hectares.
