JAKARTA (TheInsiderStories) – Property developer, PT Ciputra Development Tbk (IDX: CTRA) plans to offer as many as 1.85 billion new shares with a private placement scheme next month, the company said on Tuesday (07/29). The number is equivalent to 10 percent of the total paid up and fully shares.
Recently, the company owned by the Ciputra family had announced it was looking for a strategic investor to develop several property projects in Indonesia. However, the management has not been able to provide details regarding the plan.
According to management, the transaction value of this program is estimated at Rp462.5 billion (US$32 million), which will be used as working capital. The Ciputra shareholders who did not participate in the additional capital would experience ownership dilution of a maximum of 9.99 percent.
The director stated, capital increase part of an anticipation the increasing need for funds over the next two years. This plan will first be sought for shareholder approval on July 30, 2020. Currently, the management is awaiting an effective statement from the Financial Service Agency.
Last March, the developer’ shareholders increased their ownership 5.81 percent of Ciputra shares by buying 1.07 billion shares or Rp789.48 billion. With the purchase of this stock, its major shareholder, PT Sang Pelopor, now holds 52.77 percent ownership from previously around 46.69 percent.
In the first quarter of 2020, the company posted a net profit worth of Rp177.51 billion, down 37.29 percent compared to the same period of last year Rp283.1 billion. This was due to a decreased in the company revenues by 8.31 percent to Rp1.51 trillion from earlier Rp1.64 trillion.
The company was established on October 22, 1981, when the founding father established a company named PT Citra Habitat Indonesia. In 1990 he changed the name of the company to PT Ciputra Development.
In line with business development, in 1994 the company made an Initial Public Offering on the Indonesia Stock Exchange. In 1999, its subsidiary, PT Ciputra Surya Tbk conducted an IPO and then PT Ciputra Property in 2007. In 2016, Ciputra Surya rejoined Ciputra Development.
To date, Ciputra has developed around 76 projects such as housing, apartments, shopping centers, hotels, golf courses, hospitals and offices in more than 33 major cities throughout Indonesia. The company has also developed residential projects that target lower-class consumers in several locations, including in Makassar (South Sulawesi), Cibubur (Jakarta), and Batam (Riau).
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