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iversified real estate developer Pakuwon Jati is looking to raise Rp 1.75 trillion (US$150.5 million) from a rights offering next month, which will be used to finance the company'€™s expansion plans.

The publicly listed company plans to issue 4.81 billion new shares, representing 10 percent of its enlarged capital, pending approval from an extraordinary general shareholders'€™ meeting slated for June 12, according to an official statement made available on the Indonesian Stock Exchange (IDX) website.

The new shares will be priced at Rp 363 apiece, compared to Friday'€™s closing price of Rp 408 each. Pakuwon'€™s stocks surged almost 10 percent during the day compared to the previous day.

'€œThe rights issuance is expected to strengthen the company'€™s capital structure to finance its business expansion,'€ the company said in the statement.

Pakuwon, one of the country'€™s largest mall developers, plans to disburse Rp 1.8 trillion of capital expenditure this year to finance its projects.

It is currently working on two huge projects '€” Kota Kasablanka superblocks in South Jakarta and a township in Surabaya, East Java.

The Surabaya-based firm is also working on Tunjungan City superblocks in its hometown.

'€œFollowing the rights issuance, each of the company'€™s shareholders will have its ownership of shares diluted by 9.09 percent,'€ the statement reads.

Currently, the public holds 47.79 percent of Pakuwon'€™s shares, followed by Burgami Investments Ltd. (20.9 percent), Pakuwon Arthaniaga (16.75 percent), Concord Media Investment Ltd. (7.39 percent) and Raylight Investment Ltd. (7.15 percent).

Pakuwon corporate secretary Minarto Basuki said that the company had yet to identify potential buyers for the new shares.

'€œWe have no specific target of which investors should acquire the stakes,'€ he said as quoted by kontan.co.id.

Pakuwon saw its revenue rise by 14.7 percent year-on-year to Rp 825.05 billion during the first three months of the year, while its net profit rose by 28.9 percent to Rp 404.74 billion.

The company'€™s marketing sales hit Rp 586 billion between January and March, an 8.5 percent increase compared to the same period last year.

Sales of condominiums made up 39.8 percent of Pakuwon'€™s first-quarter revenue, while rental and service charges contributed around 32.26 percent.

Shares in Pakuwon, which are traded on the IDX under the code PWON, have risen 51.1 percent so far this year, easily outperforming the broader Jakarta Composite Index'€™s (JCI) 16.6 percent gain.

The company had a total market capitalization of almost Rp 20 trillion as of Friday.