The developer of Transit Oriented Development (TOD) residence, PT Urban Jakarta Propertindo, Tbk (UJP) priced its Initial Public Offering (Initial Public Offering/IPO) ranging from IDR 1,000 – IDR 1,250 per share to the public. The number of shares offered will be 600 million shares or equal to 16, 85% of total capital issued and paid-up in full after the IPO. In addition, UJP also issued new shares for the conversion. This is based on the convertible loan agreement dated 22 November 2017 up to a maximum of 400 million shares or equal to 11, 23% shares. As a result, total number of the new shares issued will reach 1 billion shares or equal to 28, 08% of total capital issued and paid-up in full by the company. In such event, UPJ appointed PT RHB Sekuritas Indonesia and PT Sinarmas Sekuritas as the Lead Underwriter. The Director of Finance PT RHB Sekuritas, Ilman Hilmansyah said that share price offered reflects price earning ratio (PER) of 17-20 times.
“We are sure that the shares of the Company will be absorbed by the market despite the current fluctuate market condition,” he said at the Press Conference after the Due Diligence Meeting & Public Expose IPO in Jakarta, Monday, (12/11).
Meanwhile, Independent Director of UPJ, Tri Rachman Batara conveyed that IPO proceeds will be allocated by 50% for land acquisition di Jabodetabek, then 30% for capital expenditure and development, including 20% for the working capital of UPJ. This year, he said, UPJ allocated fund capital expenditure (capex) in the amount of IDR 300 billion while in 2019 set at IDR 500 billion. With regard to the IPO, at the listing with BEI scheduled on 12 December 2018, UPJ also offered up to 840 million Series I warrants. The warrant exercise period according to Tri, will be 12 June 2019 until 10 December 2021. “The issuance of new shares for the conversion is not accompanied by warrant,” he added. While, the book building of shares took from 9 November and expire on 19 November 2018. The Lead Underwriter estimated the effective date on 30 November 2018. The public offering was scheduled on 4-6 December 2018, listing with BEI was scheduled on 12 December 2012. In relation to the performance, per semester I-2018, the Current Assets of UPJ recorded an increase of IDR 17, 3 billion or 1,69% year on year. This was contributed by the increase in real estate assets in the amount of IDR162, 31 billion or in the amount of 43, 09%, in line with the course of projects of the company.
UPJ revenue for the first six months this year is recorded at IDR 52,4 billion, an increase of 44% compared with the revenue in 2017. This increase was mainly contributed by the sales of apartment Lot 1 in Gateway Park project in semester I-2018, where in 2017 the company sold the store houses in Gateway Park project.
The Margin net profit of UPJ in semester I-2018 was 33,72%, an increase from the previous semester of 28,36%. This was contributed by the increased net profit of UPJ from the increased revenue of the company. Currently, Urban Jakarta is developing four project with TOD concept on the Jabodetabek LRT network lines. Total four projects worth IDR 10,2 trillion for 5 years and two of them are undertaken by Joint Operation (KSO) with PT Adhi Commuter property (d/h PT Adhi Karya (Persero) Tbk. – Divisi TOD), Gateway Park of IDR 3,7 trillion and Urban Signature IDR 3,77 trillion. In addition, the other two projects, Urban Sky worth IDR 1,41 trillion and Urban Suites worth IDR 1, 58 trillion is solely developed by Urban Jakarta. UPJ Management is sure that until the end 2018 it will reach net profit of IDR 35 billion, while in 2019 set the target revenue of IDR 240 billion.
Source: Berita Satu – Majalah Investor