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ublicly listed property developer PT Bumi Serpong Damai (BSDE) plans to sell new shares in a non-preemptive rights issue to earn around Rp 2.96 trillion (US$304 million) to support its expansion.

The company will off load 1.75 billion new shares, which will account for 10 percent of its enlarged capital, with the price set at Rp 1,691.

'[The company] will use the funds raised from the planned non-preemptive rights issue to purchase plots of land, develop projects and infrastructure, as well as support operational capital,' the company said in an announcement made public on Wednesday.

The company also said that it would likely use the funds to support its subsidiaries through capital injections.

BSDE will seek approval from shareholders in an extraordinary general meeting scheduled on
May 30.

BSDE has two years following the approval from shareholders to exercise non-preemptive rights issue either at once or gradually.

BSDE raised Rp 1 trillion from selling debt papers last year, which was part of its planned Rp 3 trillion bonds.

BSDE director Hermawan Wijaya said that the company would likely exercise the next stage of the bonds issuance this year.

BSDE shares remained unchanged at Rp 1,780 on Wednesday.

The company's market shares reached Rp 31.32 trillion as of Wednesday.

BSDE, a member of the Sinar Mas Group, is the developer of BSD City township, which lies on 5,950 hectares in Serpong, Banten, southwest of Jakarta.

BSDE developed the first stage of BSD City covering 1,500 hectares and is working on the second stage on 2,000-hectare plot.

It is targeting to complete the second stage by 2020, while preparing for the third stage of development on a 2,450-hectare plot of land.

Besides enjoying business growth on the back of rising property demand, BSDE also benefits from foreign investment in the country.

It recently stated that it boosted its profit in the first quarter of the year, following sales of land, including for its joint venture with Hong Kong Land and for the development of a shopping center with Japanese AEON Mall.

BSDE booked Rp 2.08 trillion in revenue during the first three months of the year, soaring from Rp 800.11 billion in the same period of last year.

Its net profit stood at Rp 1.24 trillion in the first quarter of the year, another massive growth compared to Rp 265.7 billion in the same period of last year.

The company said it expects to book Rp 2 trillion in net profit by the year end.

The company's total assets reached Rp 17.8 trillion as of the end of March this year.

The company recently acquired 3 hectares of land in Rasuna Epicentrum in Kuningan, South Jakarta, from another property developer, PT Bakrieland Development (ELTY), in a Rp 868.93 billion deal. BSDE's Hermawan has said that the company is planning to develop a premium apartment in the area.

Projects in central business districts are believed to bring many benefits as demand in the area is growing while land supply is limited.

A number of property companies executed plans to raise funds to support their expansion to tap the country's growing property market.

Besides using internal cash, property firms raised funds from rights or bond issues, particularly to acquire more plots of land. For example, PT Modernland Realty has said that it aims to raise $300 million.