Alam Sutera sets IPO next month for expansion

The Jakarta Post, Jakarta

Real estate and property company PT Alam Sutera Realty plans an initial public offering next month, expecting to take in Rp 340 billion (US$3.73 million) to help finance its expansion plan.

Corporate secretary Joseph Sanusi Tjong on Monday told a press conference the company would sell 2.99 billion new shares, accounting for 17.65 percent of its stake, at between Rp 105 and Rp 115 each on the Jakarta Stock Exchange.

The company will list the shares, which will be underwritten by PT Ciptadana Securities, on Dec. 18.

"We need Rp 500 billion in investment to build a mall integrated with a theme park in our real estate complex in Serpong, Tangerang, and we will use all the IPO proceeds supported with our internal cash for that project," he said.

President-director Tri Ramadi said the mall and the park will be built together on 22.75 hectares of land. The mall will have 300 outlets to be leased to retailers for a fee of around Rp 200,000 per square meter.

Alam Sutera is now developing residential and commercial property with access to the Jakarta-Merak toll road. It reported earning Rp 182.38 billion from sales in the first eight months of this year, resulting in a net profit of Rp 3.80 billion.

Sales are expected to double for the whole-year 2007, giving the company a net profit of Rp 20.08 billion.

Tjong said the company, supported by additional capital from the IPO, would boost its sales to Rp 625 billion and its net profit to Rp 100.53 billion in 2008.(nkn)