ADCP, a subsidiary of state-owned LRT developer PT Adhi Karya, plans to use 49 percent of the funds to pay back bond debt, 26 percent to develop an existing project in Bogor, West Java, and 25 percent to acquire land in Bekasi, West Java. The land will be used to build residential and commercial properties.

“This IPO further strengthens the company's business as a leading transit-oriented development (TOD) property developer,” said ADCP president director Rizkan Firman during the IPO at the Indonesia Stock Exchange (IDX).

The IPO dilutes Adhi Karya’s ownership of ADCP from nearly 100 percent to 90 percent, with the remaining 10 percent now owned by the public.

Spun off from Adhi Karya in 2018, ADCP has two main businesses: developing residential and office areas under the LRT City and Adhi City brands and managing property, including hotels, offices and commercial spaces.

ADCP business development director Rozi Sparta said the company had “substantial income to finance future projects [and] strong financial, macroeconomic conditions with government support for the property sector”.

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