Jakarta. Shares of property giant Pantai Indah Kapuk Dua (PANI), a prominent developer under the Agung Sedayu and Salim Group, surged 9.38 percent to Rp 17,500 ($1.1) by the close of the first trading session on Thursday. Over 11.37 million shares were traded, totaling Rp 191.24 billion.

The spike in PANI's stock follows growing investor interest in its subsidiary, Bangun Kosambi Sukses, which is preparing for an initial public offering (IPO). According to a prospectus released on Thursday, the IPO subscription period for Bangun Kosambi will run from Jan. 3 to Jan. 9, with shares scheduled to list on the Indonesia Stock Exchange (IDX) under the ticker CBDK on Jan. 13. Trimegah Sekuritas is acting as the appointed underwriter.

Bangun Kosambi Sukses is offering 566.89 million shares, representing 10 percent of its total shares, at an offering price of Rp 4,060 per share, the upper end of its initial price range. The IPO is expected to raise approximately Rp 2.3 trillion.

Proceeds from the IPO, after deducting issuance expenses, will be used to acquire 99.93 percent of shares in Industri Pameran Nusantara (IPN), a company involved in the meetings, incentives, conferences, and exhibitions (MICE) industry. IPN will utilize the funds to finance the construction of a new convention center on a 40-hectare plot of land, double the size of Indonesia's current largest MICE venue, ICE BSD in Tangerang, Banten.

CBDK primarily focuses on real estate development in Tangerang through its subsidiaries. In 2023, CBDK was the largest contributor to PANI’s revenue, accounting for 90 percent of its income and 50.7 percent of its assets. PANI's portfolio includes residential projects such as Permata Hijau, Manhattan, and Millennial Houses, as well as commercial areas like Bizpark PIK 2, Soho Manhattan, The Bund, and Millennial Shop Office.

For 2024, CBDK expects a 2 percent growth in revenue, targeting Rp 2 trillion with a net profit margin of 47 percent. This would result in a net profit of Rp 936 billion, reflecting a 62 percent increase from the previous year.