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Another Ciputra subsidiary to enter stock market

Major property group Ciputra Development is to have one more subsidiary listed in the stock exchange, as its third largest asset, Ciputra Residence, has submitted its proposal to go public later this year to the Indonesia Stock Exchange (IDX)

Anggi M. Lubis (The Jakarta Post)
Jakarta
Thu, August 13, 2015

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Another Ciputra subsidiary to enter stock market

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ajor property group Ciputra Development is to have one more subsidiary listed in the stock exchange, as its third largest asset, Ciputra Residence, has submitted its proposal to go public later this year to the Indonesia Stock Exchange (IDX).

IDX director for corporate listing Samsul Hidayat said that the property firm was the latest in the stock exchange'€™s pipeline of companies to have an initial public offering (IPO) this year.

'€œWe received their proposal on Aug. 7, they submitted it using their June books,'€ he explained recently.

Samsul did not elaborate what percent of the developer'€™s enlarged capital will be floated. Ciputra Development'€™s officials, meanwhile, did not return The Jakarta Post'€™s telephone calls and text messages for further details about the IPO plan.

Ciputra Residence will be Ciputra Development'€™s third subsidiary listed in the IDX. Ciputra Surya entered the bourse in 1999, while Ciputra Property made its public debut in 2007.

Ciputra Residence is Ciputra Development'€™s third biggest subsidiary in terms of assets after Ciputra Property and Ciputra Surya, according to the holding'€™s latest financial report.

The company'€™s total assets, as of June, stood at Rp 5.44 trillion (US$393 million), around Rp 2.35 trillion was in its equity while the remainder Rp 3.09 trillion was posted in its liabilities.

The company managed to book a 20.25 percent increase to Rp 909.91 billion in the first six months of 2015, compared with same period the previous year. Its net profits climbed by around 13 percent to Rp 276.29 billion during the reported period, up from Rp 236.5 billion in between January and June last year.

The company'€™s projects, according to its official website, are mostly planned communities located in a number of cities across the nation including in Jakarta, Pontianak in West Kalimantan, Samarinda in East Kalimantan and Mendalo in Jambi. The company, however, has started to add high-rise projects in its portfolio, including office property Citra Tower in Kemayoran.

In early last year, the company issued a series of bonds amounting to Rp 500 billion, with coupons set in between 11.75 percent and 12.75 percent.

Fitch Ratings Indonesia has affirmed '€œA(idn)'€ for the bonds, with a stable outlook, through a statement made earlier this year.

'€œThe rating reflects Ciputra Residence'€™s small, albeit increasing, scale, project concentration, conservative credit metrics and strong linkage with its parent company, Ciputra Development. Fitch believes that Ciputra Residence'€™s scale will improve in 2015 and 2016 due to a growing property portfolio,'€ the statement said.

The agency estimated that the company'€™s marketing sales will reach Rp 3.6 trillion in 2014, a 24 percent increase from Rp 2.9 trillion in 2013.

'€œFitch also believes that Ciputra Residence will further diversify its projects in 2015 with the addition of new residential, commercial, and apartment projects. The company successfully added two residential, one office, and one apartment project to its sales in 2014 '€” from only 7 residential projects in 2013,'€it continued.

With Ciputra Residence, the bourse currently has five companies in the pipeline to go public.

The other companies are Victoria Insurance, broadband provider Internux, oil and gas service firm Vallianz Offshore Maritim, and e-commerce company Mitra Komunikasi Nusantara, according to Samsul.

There are 12 companies that have listed their shares so far, the latest of which is Bank Harda Internasional, which made its public debut on Wednesday after releasing 25 percent of its enlarged capital in an IPO. The bank reaped Rp 100 billion from floating 800 million of shares, priced at Rp 125 each.

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