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Private property developer PT Ciputra Property Tbk is set to
offer 2.1 billion new shares, or about 40.1 percent of the company's
total shares, during the company's initial public offering (IPO) later
this month.
Ciputra Property president director Candra Ciputra said Monday that the
shares would be sold at a price range of between Rp 570 and Rp 800 each
during the offering period, which will run from Oct. 31 through Nov. 7.
The proceeds of the IPO, which is expected to raise at least Rp 2
trillion in fresh funds, will be used to finance the development of
Ciputra Property's latest mixed-use commercial superblock project, the
Ciputra World Jakarta, he said.
"The number of new shares on offer is substantial. This is in line with
the amount of money needed to finance the Ciputra World Jakarta while
supporting the growth and expansion of the company as a whole," Candra
said during a press briefing at the Ciputra Hotel Jakarta.
The Ciputra World Jakarta, which is expected to cost about Rp 4.2
trillion to build, will be developed in stages over a period of between
three and seven years. Construction will commence by the end of this
year.
The 558,000 square meter Ciputra World superblock will be built on an
11-hectare plot in the heart of the city's "Golden Triangle", linking
Jl. H.R. Rasuna Said, Jl. Jendral Sudirman and Jl. Gatot Subroto.
"The project will be developed in three phases. The first two are
expected to be completed by 2010, while the date for the third has
still not been decided. But it shouldn't take longer than 2012,"
company director Artadinata Djangkar said.
Artadinata added that the project would include a mall, a hotel, an
apartment complex, an office building and a luxury condominium
development.
Ciputra Property is currently owned by PT Ciputra Development, Tbk. The
IPO will dilute the parent company's stake to 59.9 percent from 100
percent at present.
Ciputra Property's current portfolio includes several mixed-use
establishments such as the Ciputra Mall and Hotel in Jakarta, the
Ciputra Mall and Hotel in Semarang, Central Java, and the Somerset
Grand Citra Apartments in Jakarta.
Ciputra Property has appointed PT Danareksa Sekuritas as the lead
underwriter for the public offering.
The new shares will be listed on the Jakarta Stock Exchange (JSX) on
Nov. 7.
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