Avantgarde Capital - The Best Boutique Investment Bank in Indonesia: Financial Adviser, M&A, IPO, Private Equity , Corporate Restructuring, and Deals

PT Nusa Raya Cipta Tbk

Date of Completion

June 2013

 

Deal Type

Initial Public Offering of PT Nusa Raya Cipta Tbk (NRCA) and listing on the Indonesian Stock Exchange.

The transaction was also preceded by a pre-IPO Share Placement of a minority stake in NRCA to PT Saratoga Investama Sedaya Tbk. The total proceeds amounting to IDR 380 billion were used for the construction of commercial high-rise properties and infrastructure projects, particularly the new 116km Cikampek-Palimanan toll road.

Company Description

A leading private construction company and subsidiary of the listed Indonesian property group, PT Surya Semesta Internusa Tbk (SSIA), providing construction service for commercial building and infrastructure. With more than 40 years of experience, NRCA is recognized as Indonesia’s leading high-rise and quality construction specialist and has handled a variety of projects, spread across various regions in Indonesia such as the construction of hotels and resorts, office buildings, apartments, hospitals, shopping centers and factories and infrastructure development. Some of its notable projects include exclusive and luxury resorts in Bali, such as the Bvlgari, Banyan Tree, Mulia, and Ayana hotel and resorts, and Ciputra World Complex in Jakarta.

NRCA envisaged the funds generated from the IPO will help the company to finance several projects, including the construction of superblock Ciputra World II in Jakarta, Parahyangan Residence in Bandung and the Cikampek-Palimanan toll road. In addition to its current construction projects for SSIA’s hotel chains and industrial property, Saratoga’s ownership in the Company will provide exposure to NRCA to undertake future infrastructure construction potential through Saratoga’s project portfolios. Saratoga is the owner of PT Adaro Energy Tbk, PT Mitra Pinasthika Mustika Tbk and Tower Bersama Group.

Our Role and Value Added Services

AvantGarde advised PT Nusa Raya Cipta Tbk in raising a total consideration of IDR 380bn (USD 38 mn) through IPO and pre-IPO private placement issuing a total of 19% new shares. The first 12.34% was issued to the public with an offering price of IDR850 per share. The remaining 7% was subscribed by Saratoga Investama Sedaya through a pre-IPO private placement.

AvantGarde played an instrumental role in preparing the Company and the management in the key aspects of the IPO from the start of the process to listing. We advised NRCA in developing the IPO equity story, structure and pricing strategy to optimize value of the Company and ensure a successful execution of the IPO. The successful listing of NRCA promotes the Company’s further growth and expansion plans, enhanced management professionalism and accountability, and good corporate governance.