P

roperty firm Metropolitan Land, a subsidiary of property giant Ciputra Group, aims to offer 30 percent of its enlarged capital to the public to receive fresh funds for constructions of malls, hotels and apartments in the nation’s big cities.

The firm, branded Metland, said in a statement released Tuesday that it will list 2.27 billion shares on the Indonesia Stock Exchange (IDX), comprising 1.89 billion new shares and 378.97 million existing shares owned by British Virgin Islands-based company Netstar Holdings Limited, which currently owns a 19.76 percent stake in the firm.

“The firm agrees on ESA [employee stock allocation] and MSOP [management stock ownership plan], where in a fixed allotment of 2 percent of the new shares or 37.89 million pieces will be allotted for the ESA and a maximum shares of 1 percent for MSOP,” Metland said in the statement.

The shares are expected to be floated on the IDX on May 13. The initial public offering (IPO) period is scheduled to run from Tuesday to next Wednesday while the estimated offering period is will run from May 9-10.

Danareksa Sekuritas and DBS Vickers Securities Indonesia have been appointed as underwriters for the initial shares offer.

Metland has not officially announced the size of the IPO, but conglomerate Ciputra has said Metland aimed to raise up to Rp 1 trillion from the initial shares offer.

“I think currently [the IPO size] is at about Rp 600 billion,” a source involved in the initial shares offer told The Jakarta Post.

The IPO proceeds will be used mainly for the construction of Metropolitan Grand Mall in Bekasi, the firm said.

“48.5 percent will be used to develop Metropolitan Grand Mall on Jl. KH Noer Ali, 300 meters from the Metropolitan Mal. Upon the release of this prospectus, the empty land is controlled by the firm,” Metland said in the statement.

About 23.75 percent of the proceeds will be allocated to add capital in Metland’s subsidiaries, namely Sumbersentosa Guna Lestari (10 percent), Fajarputera Dinasti (8.75 percent) and Metropolitan Permata Development (5 percent). The subsidiaries intend to develop Horison Hotel on Jl. M.T. Haryono, Central Jakarta, housing projects in Cibitung, Bekasi, and Horison Hotel in Seminyak, Bali, respectively.

The remaining proceeds will be used for the M-Gold Residence apartment (5.25 percent) and Horison Hotel (13 percent) near the Metropolitan Grand Mall in Bekasi.

Metland was established in 1994 by the Metropolitan Development group, founded by conglomerates Ciputra, Sudono Salim (Liem Sioe Liong) of the Salim Group, Indika Group’s Sudwikatmono and four other entrepreneurs.

It is currently controlled by Singapore’s Reco Newtown (50 percent), with remaining shares owned by Metropolitan Persada Internasional (30.24 percent) and Netstar.

Following the IPO, Metland will be 30 percent owned by the public, 37.5 percent by Reco, 22.68 percent by Metropolitan Persada and the remaining 9.82 percent by Netstar.

Metland’s data showed that it booked Rp 69.07 billion net profits last year, a 30.17 percent increase compared with 2009’s Rp 53,06 billion. Operating income rose 12.24 percent to Rp 104.05 billion while revenues increased 4.35 percent to Rp 331.38 billion in 2010.