NEWS

IPO & Bond News Indonesia: ABMA Land

18 October 2016 | 

• ABMA Land
• Anugerah Berkah Madani

Indonesian property developer Anugerah Berkah Madani (ABMA Land) plans to set a lower target regarding its initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in November 2016. Earlier, it planned to offer 3.33 billion shares, or 25 percent of its total outstanding capital stock. Currently, the company is reviewing its prospectus and intends to offer 1.76 billion, or 15 percent of its stock, to investors through the IPO. The indicative price will remain at the range of IDR 800 - 1,250 per share.

Musyanif, President Director of Anugerah Berkah Madani (ABMA Land), added that the company also needs to change the composition of the underwriters for the IPO. Earlier, it had appointed CIMB Securities, Mandiri Sekuritas and RHB Securities Indonesia. However, reportedly, after plans surfaced to cut the IPO these three underwriters resigned. Soon, ABMA Land will announce the new lead underwriter. Under the revised IPO plan, the Jakarta-based property developer should collect up to IDR 2.2 trillion (approx. USD $169 million).

Despite cutting the IPO, the allocation of IPO proceeds is left unchanged. Roughly 87.5 percent of funds generated through the IPO will be used to establish eight property projects in Jakarta, Bogor, Depok, Tangerang, Cilegun, Bekasi and Surabaya (most of the funds are used to finance land acquisition). The remaining 12.5 percent will be used to settle the company's debts.

Musyanif informed that ABMA Land intends to launch two new projects each year in order to boost business. The company is primarily focused on apartment and mixed-use development. This year it targets to see revenue rising by a staggering 234 percent (y/y) to IDR 1.2 trillion from IDR 359.1 billion last year, while profit (after tax) is targeted to reach IDR 460 billion in 2016.

The largest shareholder of ABMA Land is Saligading Bersama, a diversified holding company, established in 2004, with activities in property development, hotel as well as restaurant development, aquaculture, manufacturing, telecommunications, and more.