JAKARTA. Industrial area developer PT Bekasi Fajar Industrial Estate is planning to float its shares on the Indonesia Stock Exchange (IDX) early in the second quarter of this year, with the aim of raising up to Rp 300 billion (US$33 million).The company has appointed Ciptadana Securities to be the underwriter for the initial public offering (IPO).Ciptadana Securities president director Ferry Budiman Tanja said that Bekasi Fajar would make about 20 percent of its enlarged shares available to the public.“We are still in the process of assessing the exact number and prices of the shares that will be offered to the public,” Ferry told The Jakarta Post over the telephone on Friday. Ferry said the company would likely carry out the IPO in April.Recently, IDX corporate listing director Eddy Sugito revealed that Bekasi Fajar had already presented its plan to carry the IPO to the bourse’s executives. Eddy said Bekasi Fajar was aiming to use the proceeds from the IPO to be spent on working capital and land acquisition.Bekasi Fajar is owned by Argo Manunggal Groups, which also holds shares in publicly-listed PT Alam Sutera Realty.Fery said that Bekasi Fajar took part in the development of 1,200 hectares of MM2100 Industrial Town in Bekasi, West Java. MM2100 Industrial Town is an integrated industrial estate developed by PT Megalopolis Manunggal Industrial Development (MMID), which was established in 1990 by the Marubeni Corporation of Japan and the Manunggal Group of Indonesia. Bekasi Fajar has yet to issue a prospectus in connection with its IPO plan.A financial analyst of Mega Capital Indonesia, Arya Cipta Sugandrio, argues that Rp 300 billion was a modest amount for the growing industrial developer business.“If they use funds to acquire lands, they will only get about 30 hectares, which are not so big for industrial area developer. However, I still don’t know the size of Bekasi Fajar’s land bank,” Arya said.Several companies running business in industrial estate development are already listed at the IDX, such as PT Surya Semesta Internusa and PT Kawasan Industri Jababeka.Arya said that Bekasi Fajar might still have a good prospect to enter the secondary market in line with the country’s development of industrial estate.“Our economy is developing among the best in the world. It leads to growth in the industrial estate business, which sees rising demands of up to 1,000 hectares in total,” Arya said.He said that the government regulations on bonded zones also supported the increase in demands over industrial estate.Recently, the government issued regulation no. 147/2011 on bonded zones, stipulating that bonded zones with a size of less than 10,000 square meters had to be located in industrial estates. The regulation gives a transition period up to the end of 2016. (The Jakarta Post)
Bekasi Fajar eyes Rp 300 billion from IPO
JAKARTA. Industrial area developer PT Bekasi Fajar Industrial Estate is planning to float its shares on the Indonesia Stock Exchange (IDX) early in the second quarter of this year, with the aim of raising up to Rp 300 billion (US$33 million).The company has appointed Ciptadana Securities to be the underwriter for the initial public offering (IPO).Ciptadana Securities president director Ferry Budiman Tanja said that Bekasi Fajar would make about 20 percent of its enlarged shares available to the public.“We are still in the process of assessing the exact number and prices of the shares that will be offered to the public,” Ferry told The Jakarta Post over the telephone on Friday. Ferry said the company would likely carry out the IPO in April.Recently, IDX corporate listing director Eddy Sugito revealed that Bekasi Fajar had already presented its plan to carry the IPO to the bourse’s executives. Eddy said Bekasi Fajar was aiming to use the proceeds from the IPO to be spent on working capital and land acquisition.Bekasi Fajar is owned by Argo Manunggal Groups, which also holds shares in publicly-listed PT Alam Sutera Realty.Fery said that Bekasi Fajar took part in the development of 1,200 hectares of MM2100 Industrial Town in Bekasi, West Java. MM2100 Industrial Town is an integrated industrial estate developed by PT Megalopolis Manunggal Industrial Development (MMID), which was established in 1990 by the Marubeni Corporation of Japan and the Manunggal Group of Indonesia. Bekasi Fajar has yet to issue a prospectus in connection with its IPO plan.A financial analyst of Mega Capital Indonesia, Arya Cipta Sugandrio, argues that Rp 300 billion was a modest amount for the growing industrial developer business.“If they use funds to acquire lands, they will only get about 30 hectares, which are not so big for industrial area developer. However, I still don’t know the size of Bekasi Fajar’s land bank,” Arya said.Several companies running business in industrial estate development are already listed at the IDX, such as PT Surya Semesta Internusa and PT Kawasan Industri Jababeka.Arya said that Bekasi Fajar might still have a good prospect to enter the secondary market in line with the country’s development of industrial estate.“Our economy is developing among the best in the world. It leads to growth in the industrial estate business, which sees rising demands of up to 1,000 hectares in total,” Arya said.He said that the government regulations on bonded zones also supported the increase in demands over industrial estate.Recently, the government issued regulation no. 147/2011 on bonded zones, stipulating that bonded zones with a size of less than 10,000 square meters had to be located in industrial estates. The regulation gives a transition period up to the end of 2016. (The Jakarta Post)