Bumi Serpong Damai announces IPO

The Jakarta Post, Sat, 05/10/2008 10:34 AM

PT Bumi Serpong Damai (BSD), developer of the popular satellite city complex west of Jakarta, will sell shares in an IPO expected to generate Rp 872 billion (US$94.42 million) in capital.

Director Teky Mailoa said Friday 1.09 billion shares would be sold for Rp 388 to Rp 800 per share between May 28 and 30. BSD will officially be listed on the Indonesian Stock Exchange on June 5.

"About 30 percent of the capital raised will be allocated to developing infrastructure in the city, such as roads, water treatment facilities and electricity and phone networks," Teky said.

He said another 25 percent of the proceeds would be used to refinance the company's Rp 600 billion bonds, 20 percent for financing the expansion of property projects, 20 percent for buying land and the remaining 5 percent for capital.

The issuance of the new shares will be underwritten by PT Sinarmas Sekuritas, PT CLSA Indonesia and PT Nusadana Capital.

Teky said by the end of April BSD had recorded Rp 954 billion in revenue this year.

BSD City is located on 5,920 hectares of land about 20 kilometers west of Jakarta. The company plans to build 80 housing clusters, seven community centers and an integrated commercial area on the site.

Currently there are 4,100 commercial outlets and 20,600 homes with 100,000 residents in BSD.

The company is winding up the second phase of 2,000 hectares of land development begun in February last year, said president director Harry Budi Hartanto.

It expects to complete the third phase of 2,150 hectares of land development later this year. -- JP/Novia D. Rulistia