JAKARTA (TheInsiderStories) – PT Bumi Serpong Damai Tbk (IDX: BSDE) plans to increase capital around Rp1.5 trillion (US$107.14 million) through a private placement, said the company on Thursday (06/11). The property developer plans to issue new shares as much as 1.92 billion shares in this month to specific investors.
According to Bumi Serpong’ director, Hermawan Wijaya, this transaction will be carried out on June 18. No further details whose the buyer of the new shares. Beside sell the company shares, the unit of Sinar Mas Group also planned to buy back it shares from the market. For this purposes, the company prepared funding Rp1 trillion.
He said that the program would take place on March 19 to June 18, 2020. Based on the regulation, the developer will not buys exceed 20 percent of paid-up capital to provided at least 7.5 percent as a free float shares.
Early June, its unit, Global Prime Capital Pte. Ltd., announced to offer a senior notes. The firm will use some of the proceeds to repay existing indebtedness and for working capital, and other general corporate purposes.
Last year, Bumi Serpong has tried to refinance the debt with worth of $300 million but the demand are weak. After hold for months, the company has planned to buyback the bond again.
During the tender offer period on August 27 to Sept. 2, 2019, the incoming bids only reached $161.83 million far from Singapore Stock Exchange rule at least $200 million. At Sept. 30, 2019, around 62 percent of developer‘ total debt was unsecured.
Established in 1984, Bumi Serpong is one of the largest developer listed on the Indonesia Stock Exchange by market capitalization. The company and its subsidiaries are engaged in the development, management and operation of residential townships, condominium towers, office buildings, retail malls and hotel properties.
The developer is sponsored by Sinarmas Land Ltd, which held an approximate 60 percent stake in the publicly listed firm at third quarter of last year.
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