PP expects to raise Rp 581b from public offering

Nani Afrida, The Jakarta Post, Jakarta | Sun, 01/31/2010 6:41 PM

State construction company PT Pembangunan Perumahan (PP) has targeted to raise Rp 581 billion (US$63 million) from its initial public offering (IPO) of shares slated for early February.

Mandiri Sekurities, one of the IPO underwriters, said PP would sell 21 percent of its shares to the public, at Rp 560 each.

Mandiri Sekuritas director and head of investment banking Iman Rachman said investors had shown strong interest in the offer.

“Investors, including two foreign investors, Fidelity and Pheim Asset [Management], have expressed a strong interest in PP shares,” Iman said, adding that several domestic investment firms including PT Jamsostek had also made commitments.

Besides Mandiri Sekuritas, PP has also appointed Danareksa Sekuritas and DBS Vickers Sekurities Indonesia as underwriters.

Earlier PP had said the company would use the public money to finance its investment plan, including for projects in property, construction and the energy sectors.

Established in 1953, PP gained Rp 3.9 trillion in revenue last year.