Oct 19, 2010

Bakrieland placement at 12% discount

One of institutional investor who bought shares issued by property developer PT Bakrieland Development Tbk (ELTY) tonight starts book building to dispose 2.65 billion shares to 4 billion shares at 7.89%-12.1% discount from the closing price today.
A source familiar with the matter said CLSA is the sole bookrunner for the private placement.
Considering the discount, Bakrieland shares will be offered at Rp167-Rp175 per share, enabling the seller to snap up Rp442.55 billion-Rp463.75 billion or Rp668 billion-Rp700 billion.
During the rights issue, the seller bought Bakrieland's shares at Rp160 per share. Bakrieland is traded at 27.38 price to earning ratio. But, if you look at PBV, Bakrieland stocks are still traded at 0.81, still very cheap.

Disclosure: No position at the stock mentioned above.

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