Indonesia theme park operator Graha Propertindo eyes $25.9m IPO
June 10, 2016: Jungleland theme park operator PT Graha Andrasentra Propertindo is targeting to raise between Rp 300 billion ($22.5 million) and Rp 345 billion ($25.9 million) from its public offering this year. The company will offer up to 2.3 billion shares or 10.19 per cent of the paid up capital at a price of Rp 130 – 150 each.
According to the plan, the funds will be used for refinancing debts and funding water park projects in a number of cities across Indonesia. Graha Propertindo has appointed PT Danatama Makmur as the lead underwriter and bookrunner.
“This is the second theme park operator to enter the Indonesian capital market after PT Pembangunan Jaya Ancol Tbk (PJAA). Now investors have an alternative of investment within their portfolio,” said Denny Saliman, VP Investment Banking of Danatama Makmur in Jakarta.
Saliman added that he was optimistic Graha Propertindo’s shares would be fully absorbed by the public. The price to earning ration (PER) is 16 to 18 times now, lower than most PER of similar companies in the Southeast Asia.
“So in terms of PER, we are very competitive,” he said.
The bookbuilding process, which was initiated on June 2, ends on June 13. The Indonesian Financial Services Authority (OJK) is expected to release its effective statement on June 17. Subsequently, Graha Propertindo can list its shares on the Indonesian Stock Exchange (IDX) on July 4.
Graha Propertindo is a subsidiary of PT Bakrieland Development Tbk ($ELTY
). The firm owns and operates three recreational theme parks – Jungleland Sentul, The Jungle Bogor, and JungleFest Bogor. It also manages Aston Bogor Hotel & Resort, Bogor Nirwana Residence, and Jungle Sky Apartemen Bogor.
As of last year, the company’s total asset reached Rp 4.3 trillion with an equity of Rp 1.93 trillion. Meanwhile, revenues were recorded at Rp 366.32 billion. But the company still posted a net loss of Rp 254.77 billion.
However, Graha Propertindo’s president director Agus Alwie was optimistic that the company would make a turnaround on the back of the country’s growing middle-class as well as robust domestic tourism.
“The tourism sector is predicted to grow 5 per cent annually up until 2025. Data from the tourism ministry show that local tourists spent about Rp 225 trillion last year alone,” he said.
In response to the growth in tourism in Indonesia, Graha Propertindo has charted out expansion plans that include opening more theme parks in Malang, Medan, Sidoarjo, Bandung, Palembang, Makassar, Yogyakarta, and Cirebon.
Graha Propertindo had initially set out to float its IPO in January 2016 but it plans got delayed on account of undisclosed reasons. Among its current shareholders are PT Surya Global Nusantara (55,28%), PT Prima Bisnis Utama (42,22%), PT Bakrie Nirwana Realty (2,47%) and PT Sanggraha Pelita Jaya (0,03%).
Apart from Graha Propertindo, there are at least six other companies that will list their shares on the IDX by the second half of 2016. The six companies that have lined up are Cikarang Listrindo, Sillo Maritime Perdana, Duta Intidaya, Protech Mitra Perkasa,Capital Financial Indonesia and Megapower Makmur.