PT Ciputra Development Tbk (IDX: CTRA) had completed the debt refinancing of global bond S$150 million (US$111.94 million), due in September 2021 and has coupon rate 6 percent - Photo by the Company

JAKARTA (TheInsiderStories)PT Ciputra Development Tbk (CTRA) is ready to release shares through a private placement mechanism with total 1.85 billion shares or 10 percent of the issued and fully paid capital, said the property developer today. The value of this transaction is estimated at Rp1.2 trillion (US$83.91 million).

However, management said, until now the company has not received a statement of interest from strategic investors and has not been able to provide details of the program. As of today, the average price of the company’ shares is at the level of Rp631 per unit.

Referring to the previously published prospectus, all funds from the additional capital will be used to develop Ciputra‘ business going forward. The plan, the company will hold a General Meeting of Shareholders on 30 July to request the approval of this private placement.

The percentage of share ownership of each shareholder will decline (dilution) by 9.99 percent, but the number of shares owned by shareholders before and after the issuance of shares has not changed.

Throughout 2019, Ciputra achieved a net profit of Rp1.16 trillion, down by 2.3 percent compared to the previous year of Rp1.19 trillion in line with the decline in income. CTRA revenues also fell despite a slight 0.8 percent to Rp 7.61 trillion compared to December 2018 which was Rp7.67 trillion.

The company director, Tulus Santoso said, the private placement plan is an alternative financial support if the company at any time gets a business development opportunity that requires additional capital.

On October 22, 1981, Indonesian tycoon, Ciputra, founded a company called PT Citra Habitat Indonesia. In 1990 he changed his name to PT Ciputra Development.

Along with business development, in 1994 the company made an Initial Public Offering (IPO) 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.

Until now, the company 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 Group‘ unit has developed residential property projects that target lower-class consumers in several locations, including in Makassar (South Sulawesi), Cibubur (Jakarta), and Batam (Riau Island), to attract these special consumers.

US$1: Rp14,300

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