Complete The Public Offering Process, Saraswanti Indoland's Initial Shares Are Oversubscribed By Up To 22 Times

One of the hotels owned by PT Saraswanti Indoland Development Tbk. (Photo: Doc. Antara/Saraswanti Indoland)

JAKARTA - Property developer PT Saraswanti Indoland Development Tbk is getting closer to its plan to become a public company. The company's shares with SWID will be listed on the Indonesia Stock Exchange (IDX), Thursday, July 7.

During the public offering process July 1-5, SWID shares were oversubscribed up to 22 times.

President Director of Saraswanti Indoland Bogat Agus Riyono said, during July 1-5 2022, the company conducted a public offering at a price of Rp. 200 per share and the number of orders exceeded expectations. "The company's shares are mostly absorbed by retail investors, and the rest by institutional investors," said Bogat in a statement quoted by Antara, Wednesday, July 6.

Bogat is optimistic that after the IPO, the company will be able to record an increase in income in terms of recurring income, which comes from hotel business revenues. "If hotel revenue in 2021 is IDR 54.5 billion, the company projects an increase to IDR 86.3 billion in 2022," said Bogat.

Meanwhile, Director of Business Development and Corporate Secretary of Saraswanti Indoland Agung Cucun Setiawan, said that his party has now completed the construction of four new meeting rooms out of a total of seven planned at The Alana Yogyakarta Hotel & Convention Center.

"The seven new meeting rooms will increase the meeting room capacity of Alana Hotel by 400 people," said Cucun.

In the IPO, the prospective issuer with the stock code SWID released 340 million shares or 6.31 percent of the issued and paid-up capital after the IPO.

The total IPO proceeds raised by the company is estimated to reach Rp. 68 billion. All funds obtained, after deducting share issuance costs and funds obtained from the exercise of Series I Warrants, will be used as working capital for the company.

The working capital in question is related to payments to suppliers and contractors for the construction of the Arjuna and Bima apartment projects. Then, for the construction of the Banyu Bening project, the cost of maintaining MICC and hotels, purchasing raw materials for food and beverages, purchasing hotel supplies, and paying for labor and utilities.

Simultaneously, the company also issues a maximum of 340 million Series I Warrants accompanying new shares or the equivalent of 6.74 percent of the total number of issued and fully paid shares.

In the initial public offering, the company appointed PT Shinhan Sekuritas Indonesia as the implementing guarantor for the issuance of securities.