PTPP Properti To Launch Initial Public Offering

Jakarta, Aug 21 (Antara) - PTPP Properti said it plans to launch initial public offering (IPO) early next year to raise fund to finance business expansion. Galih Prahananto, the president director of the subsidiary of the state housing construction company PT Pembangunan Perumahan (PTPP), said in Bekasi on Wednesday that PT PP Property would float part of its shares on the Indonesian Stock Exchange hoping to raise a fresh fund of Rp1.5 trillion. "One of the corporate actions to be taken by the company is IPO floating 20-30 percent of its shares in the first quarter of 2015," Galih said. He said the company needs additional capital to grab opportunity for business expansion. The company will also use bank loans and equity funds to finance its ambition, he added. The company hopes to have a share in the business potential of 15 million units of houses to be built in the country in the future, he said. IPO to be launched by PTPP Properti is part of a big plan of its publicly traded parent company which also plans to build a precast factory in Lampung in 2015. President Director of PTPP Bambang Triwibowo said corporate action by PTPP is expected to contribute to increasing its profit. In 2013 , PT PP reported Rp409 billion in profit or an increase from Rp309 billion in 2012. PTPP) is set to chalk up a 30 percent increase in its projects to Rp45 trillion in value this year,from Rp35 trillion last year. Bambang said he was optimistic the target would be achieved based the company performance so far this year. In the first seven months of 2014, the company already had projects worth Rp31.28 trillion including Rp9.35 trillion worth of new projects. "PTPP has a target to win Rp24 trillion worth of new projects bringing the total value of its projects to Rp46 trillion," Bambang said. Among the new projects are Sawangan Apartment project in Depok valued at Rp605 billion, Landmark in Bandung valued at Rp600 billion, Lexington Apartment in Jakarta Rp442 billion, Wang Residence Citicon in Jakarta Rp400 billion, and projects in Semarang, Surabaya and other cities.