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roperty and logistics firm Mega Manunggal Property (MMP) plans to sell 1.71 billion shares '€” 30 percent of its enlarged capital '€” in an initial public offering (IPO) next month as a part of its business expansion plans.

Setting a price range between Rp 525 (4 US cents) and Rp 600 per share, MMP is planning to raise up to Rp 1.02 trillion in proceeds.

MMP president director Fernandus Chamsi said the company planned to use 90 percent of the funds to acquire 50 to 60 hectares of land in Java to support its logistics business over the next five years.

'€œIn the short term, we will be expanding our warehouses in Greater Jakarta and northern Java. Later, [we will expand to] Kalimantan and Sulawesi,'€ Fernandus said of the company'€™s short- and mid-term expansion plan.

Fernandus added that the remaining 10 percent of the proceeds would be used as capital expenditure to strengthen the firm'€™s property activities.

The company set the book-building period for May 15 to 21, while the offering is scheduled for June 4, 5 and 8, before shares are allotted on June 10 and listed on the Indonesia Stock Exchange (IDX) on June 12.

The company has appointed Indo Premier Securities as its underwriter.

Indo Premier Securities president director Moelonoto said MMP would organize some road shows to attract investors.

'€œWe will include Singapore and Hong Kong on our road show list,'€ Moelonoto said.

MMP was founded in 2010, focusing on providing office buildings and logistics warehouses to a variety of businesses, including those in banking, consumer product distribution and logistics. The company owns an integrated warehouse and office spaces leased by eight corporate tenants.

The company is owned by property firm Mega Mandiri Property, with a 99 percent stake, leaving the remaining 1 percent to private owner Hungkang Sutedja, who is also MMP'€™s president commissioner.

MMP is one of several property companies planning to make a public debut this year out of a total of 32 companies scheduled by the bourse.

Earlier this month, Puradelta Lestari announced that it would go public by offering 10.84 billion shares, equal to 20 percent of the company'€™s enlarged capital.

The company expects to raise between Rp 2.28 trillion and Rp 3.79 trillion from the offering as the price for the IPO shares is set at between Rp 210 and Rp 350 apiece.

Puradelta president director Teky Mailoa said that 60 percent of the IPO funds would be used to finance the construction of infrastructure and purchase of property for its flagship project Kota Deltamas in Bekasi, West Java. Another 30 percent would be used to acquire another plot of land in the area and the remaining 10 percent would be used as working capital.

Aside from MMP and Puradelta, other property companies preparing their IPOs are PP Property (a subsidiary of state-run construction firm Pembangunan and Perumahan) and Binakarya Jaya Abadi.

The other companies include Saratoga Group-affiliated mining firm Merdeka Copper and Gold; Lippo Group cable TV provider Indonesia Media Televisi; automotive manufacturer Garuda Metalindo and Vallianz Offshore Maritim.

Most of the firms are expected to enter the market by the end of the second quarter. (agn)
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'€œIn the short term, we will be expanding our warehouses in Greater Jakarta and northern Java. Later, [we will expand to] Kalimantan and Sulawesi.'€