The prospective issuer with the stock code SWID used the proceeds from the initial public offering (IPO) for the development of the fourth and fifth towers in Mataram City.
"We use the proceeds from the IPO for working capital, including to build the Arjuna and Bima apartment towers," said President Director of PT Saraswanti Indoland Development Tbk Bogat Agus Riyono in a press release, Wednesday (22/6/2022).
He added that apart from building apartments, SWID will also build a landed house in Ambarawa, Central Java.
Director of Business Development and Corporate Secretary of PT Saraswanti Indoland Development Tbk, Agung Cucun Setiawan, added that the Arjuna and Bima tower projects were built starting in the second semester of 2022.
"The Arjuna-Bima tower will begin construction in the second half of 2022. The tower capacity is 658 units," said Cucun.
He explained that the project value of the Arjuna and Bima towers was Rp. 181.5 billion. "Meanwhile, the Banyu Bening project value is Rp. 23.3 billion. The development funds are taken from the IPO proceeds,” said Cucun.
Currently, SWID owns and develops a mixed use building Mataram City in Yogyakarta City. In this project, three towers have been operated, including one hotel with a capacity of 264 rooms and two apartments. In addition, there is a Convention Center.
Middle and Upper Middle Segment
Meanwhile, Cucun said, apartments in the Arjuna tower are available with 386 studio types and 34 units of two bed room (2BR). Then, the types in the Bima tower include 187 studio units and 51 units of 2BR type.
The apartment's target market includes students in Yogyakarta. Then, investors see Yogyakarta as an attractive city for investment with high rental rates.
In addition, retirees living in Yogyakarta and young families.
"We made the Arjuna-Bima apartment as an apartment in the metaverse era so that it also targets young executives who choose to live in compact , practical and functional places such as apartments," he explained.
SWID priced apartments in Arjuna and Bima at around Rp. 550-900 million. "The market segment we are targeting is the middle and upper-middle economy," said Cucun.
Meanwhile, he added, the landed house Villa Resort Banyu Bening will consist of 56 units resort villas of exclusive The options include a building area (LB) ranging from 52-103 square meters (m2) and a land area (LT) ranging from 82-152 m2.
"We will sell these units at a price range of Rp 650 million to Rp 1.15 billion," said Cucun.
The company will list its shares on the Indonesia Stock Exchange (IDX) under an initial public offering (IPO) scheme. The property developer will release a total of 340 million shares or 6.31% of the company's issued and paid-up capital after the IPO.
The company offers a share price in the range of Rp 180-200 per share.
Citing the company's prospectus, the total IPO proceeds to be raised by the company are estimated to be around Rp 61.2-68 billion.
Simultaneously, the company also issues a maximum of 340 million Series I Warrants accompanying new shares or the equivalent of 6.74% of the total number of issued and fully paid shares.