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Jakarta Post

Property developer Andalan Sakti shares soar 70% in stock market debut

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, February 17, 2020   /   01:32 pm
Property developer Andalan Sakti shares soar 70% in stock market debut Visitors take pictures of the Indonesia Stock Exchange (IDX) trading board in Jakarta on Monday, Dec. 30, 2019. (JP/Dhoni Setiawan)

Shares of property developer PT Andalan Sakti Primaindo (stock symbol ASPI) soared 70 percent at its stock exchange debut on Monday as the company sought funds from the market to develop green properties in Greater Jakarta.

Andalan Sakti’s share price skyrocketed from Rp 105 to Rp 178 within three minutes after trading opened, indicating investors’ strong interest in the company’s prospects.

The company will use most of the Rp 34.6 billion (US$2.5 million) proceeds from its initial public offering (IPO) earlier this month to develop green residential properties in the middle-to-lower income bracket around the capital.

“Business potential in the real estate sector [is good] considering that the growth of housing demand continuously increases, driven by population growth, which increases significantly every year,” Andalan Sakti president director Suwandi Notopradono said in a written statement. 

Suwandi added that buying a house was seen as a form of investment as prices for houses always increased over the years. 

Through its subsidiary company, PT Andalan Sakti Nusa (Ansa Land), Andalan Sakti plans to build the Casa Serpong housing project in Parung Panjang, Bogor. About 85 percent of the funds raised from the IPO will be allocated for Ansa Land’s working capital, while 15 percent will go to paying debts to the company’s shareholders. 

Ansa Land, a residential property development company predominantly developing properties in the Greater Jakarta area, was acquired by Andalan Sakti in 2013 and has since developed numerous property complexes, including the Royal Matoa Residence in Depok and the Arkamaya Residence in Tangerang. 

“We are developing the Casa Serpong complex [in Bogor] with a green concept, a modern concept for millennials,” Andalan Sakti director Jansen Kustianto said on Monday. 

Jansen added that the company focused on attracting the middle-to-lower income market segment and would offer its housing units for Rp 350 million to Rp 400 million per unit.

Ansa Land would offer lower down payments and cooperate with banks who would provide the mortgage loans (KPR) for its buyers, Jansen noted. 

Of the 500 units that are planned to be built within the 15 hectares land set aside for the Casa Serpong complex, some 100 units will be developed this year and the rest will be completed in the next three to five years, according to Jansen. 

Indonesia Stock Exchange (IDX) assessment director I Gede Nyoman Yetna said in his opening remarks on Monday that Andalan Sakti was the 14th company to be publicly listed in 2020 and the 680th company overall. 

“We will not stop encouraging companies to list themselves on the stock market. We have a saying: don’t wait until [the company is] big to enter the stock market, but grow big on the Indonesian stock market,” the assessment director said while encouraging the company to realize its strategic action plan with the proceeds it had gathered.  

Andalan Sakti offered 48 percent of its total listed shares during its IPO or a sum of 330 million shares. Trading of the company’s shares was temporarily suspended on Monday as the prices exceeded the allowable increase limit for a single-day transaction as regulated in the exchange’s auto-rejection regulation. (ydp)