P

roperty company PT Pembangunan Perumahan Properti (PP Properti) will launch its initial public offering (IPO) next month to raise funds for the expansion of the company'€™s property business.

The company'€™s president director Galih Prahananto said that PP Properti would sell about 35 percent of the company'€™s enlarged shares during the IPO, which would be held during the offering period between from May 11 and 13.

He said the new shares would be sold in a price range of between Rp 185 and Rp 320 per share.

PP Properti will use 75 percent of the funds to be raised from the IPO for its expansion plans, including for expanding its 55-hectare land bank in Java and Kalimantan. About 15 percent of the funds will be used for its working capital to develop ongoing residential and commercial projects in Bekasi, Surabaya, Tangerang, Bogor and Semarang, he said, adding that the other 10 percent of the IPO proceeds will be used to pay debts to the parent company, publicly listed state-owned PT Pembangunan Perumahan (PP).

Last year, PP Properti booked Rp 555 billion in total revenues, up 85 percent compared to 2013, and Rp 106 billion in net profits.

This year, PP Properti is working on developing a number of property projects on island of Java, two of which are residential projects, namely Grand Sungkono Lagoon in Surabaya and Grand Kamala Lagoon in Bekasi. '€” JP/agn