C

iputra Group, a major property developer in the country, has dropped its plan to have one of its subsidiaries listed on the stock market this year on account of unfavorable market conditions.

Tulus Santoso, director and corporate secretary with Ciputra Development (CTRA) '€” the holding company of the group '€” said the plan to list Ciputra Residence on the bourse had been scrapped because the stock market showed no signs of picking up in the near future.

'€œWe decided to drop the plan, purely because the market is unsupportive at the moment,'€ Tulus said.

CTRA is the holding firm of Ciputra Property (CTRP) and Ciputra Surya (CTRS), the three of which are listed on the Indonesia Stock Exchange (IDX). Ciputra Residence, meanwhile, is a direct subsidiary of CTRP.

The price barometer Jakarta Composite Index (JCI) has been corrected by 18 percent so far this year, whereas property, real estate and building infrastructure slipped 17 percent year-to-date (ytd).

Ciputra Residence is CTRA'€™s third-biggest asset after CTRP and CTRS, according to the holding'€™s latest financial report.

Ciputra Residence, with total assets standing at Rp 5.44 trillion (US$393 million) as of June, booked Rp 909.91 billion in revenues in the first six months of 2015, a 20.25 percent increase from the same period in the previous year.

Its net profit climbed 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.

As previously reported, Ciputra Residence was among companies to go public this year.

Ciputra Residence'€™s cancelation to go public follows Lippo Group-affiliated pay-TV provider Indonesia Media Televisi and Wika Realty, which also dropped their plans to enter the bourse this year.

Several other companies that went ahead with their plans to have an IPO this year cut their targets, including developer PP Properti and miner Merdeka Copper Gold, on concerns that their shares might go unabsorbed.

IDX president director Tito Sulistio said he expected 20 firms to list their shares on the bourse by the end of this year. The target was lower compared to that set by Tito'€™s predecessor, Ito Warsito, who expected 32 companies to be listed throughout the year. Only 12 firms have gone public ytd.

Meanwhile, CTRA also trimmed its capital expenditure (capex) from Rp 2 trillion to Rp 1.4 trillion, to maintain cash reserves amid the slowing economy, Tulus said.

The company has also cut its marketing sales target from initially Rp 10.9 trillion to Rp 9.48 trillion, mainly due to a slowdown in high-rise and office property sales. By the end of August, only 50.6 percent of the revised target had been realized.

The company had aimed to launch 12 projects this year '€” five of which would be under CTRA, four with CTRS while the remaining three projects would be under CTRP.

So far, however, only two projects '€” an office tower in Surabaya, East Java, and Nivata Resort in Bali '€” have been launched.

Tulus said that his company was working to progress on other projects for the remainder of the year.