PT PP Property Tbk, an Indonesian state-controlled real estate firm, plans to acquire new properties and expand its hotel management business over the next five years. The company is already in discussions to acquire a hotel and shopping mall complex in Balikapapan for almost $31 million, the company's Finance Director Indaryanto said on July 31.
PP Properti went public in May, when it issued shares on the Indonesia Stock Exchange in Jakarta. The company is a subsidiary of PT Pembangunan Perumahan, a state-owned construction company. Its shares did well on their debut, raising some $6.3 million on their debut, a respectable figure in Jakarta. PP Properti was split from Pembangunan in 2013.
Since it went public earlier this year, the company has been on an expansionary push, with early plans being to use the proceeds of the IPO to acquire new properties. In 2014, the company reported revenues of around $40 million (at today’s conversion rates) for the Indonesian rupiah.