Bloomberg
Jakarta
Sinarmas Land, the Indonesian developer backed by billionaire Eka Tjipta Widjaja, has restarted talks on a $300mn initial public offering of an industrial property arm, people with knowledge of the matter said.
Sinarmas Land unit PT Puradelta Lestari, which is part-owned by Japanese trading house Sojitz Corp, may sell shares in Indonesia this year after shelving the offering in 2013, the people said. They asked not to be identified as the discussions are
private.
Puradelta Lestari is seeking a listing after shares of industrial real estate companies in Indonesia surged. It is the developer of the Kota Delta Mas project in Cikarang, located 37 kilometres (23 miles) east of Jakarta, which includes commercial, industrial and residential facilities spanning an area of about 3,000 hectares (7,400 acres), according to its
website.
“We are still looking for a good time, so I don’t want to comment on the IPO,” Ishak Chandra, managing director of corporate strategy and service at Sinarmas Land, said by phone Thursday. Sinarmas Land shares rose 1.3% to S$0.785 at the close in Singapore on Thursday.
Puradelta Lestari delayed its $191mn IPO in August 2013 due to poor market conditions, people with knowledge of the matter said at the time. It was planning to use the proceeds from the sale to fund capital expenditures and land acquisitions.
Shares of PT Kawasan Industri Jababeka, another industrial estate developer based in Jakarta, have risen 64% in the past year while rival PT Surya Semesta Internusa jumped 58%. The benchmark Jakarta Composite Index rose 17% over the same period.
Sinarmas Land is part of the unlisted Sinar Mas Group, whose interests include pulp and paper products, food and financial services. The diversified company was founded by Widjaja, who is the country’s fourth-richest man with a net worth of $6bn, according to the Bloomberg billionaires Index.